Weak M2 growth hits Shanghai stock prices
Shanghai stocks extended losses on Wednesday but remained above the 3,300-point level.
The benchmark Shanghai Composite Index fell 0.63 percent to 3,319.27 points, while the smaller Shenzhen Component Index slumped 1.17 percent to 13,308.52 points.
The ChiNext Composite Index, meanwhile, tumbled 1.98 percent to 2,635.5 points, and the blue chip CSI300 Index ended 0.73 percent lower at 4,647.64 points.
The general retreat in major indexes was partly due to weaker-than-expected growth in the country’s M2 released late on Tuesday, a broad measure of money supply that covers cash in circulation and all deposits, which rose 10.7 percent year on year, 0.4 percentage points lower than at the end of June.
Total turnover on the two major bourses exceeded 1 trillion yuan (US$143.5 billion) for the 11th session in a row, although shrinking to 1.08 trillion yuan from the 1.13 trillion yuan on Tuesday.
The Chinese mainland saw a net outflow of 1.64 billion yuan to overseas markets via the Stock Connect schemes, among which the Shanghai bourse posted a net influx of 948 million yuan.
Shares of more than 70 listed firms surged by the daily limit of 10 percent, while over 34 declined by the same.
Precious metal firms continued to lead the losses, with Chifeng Jilong Gold Mining Co slumping by the maximum 10 percent while Shengda Resources Co and Zhongjin Gold Corp both fell over 8 percent.
The aerospace and military defense sectors were also big decliners. AECC Aero Science and Technology Co, Beijing BDStar Navigation Co and Kuang-Chi Technologies Co all plunged by the 10 percent cap.
Motorcycle companies, the biotechnology industry, catering and tourism shares, and office supply firms also performed weakly, while airports and sea transport shares gained.