China Stocks Start August on Sour Note

2026-08-03 02:06 By Czyrill Jean Coloma 1 min. read

The Shanghai Composite fell 0.59% to close at 3,809.7 on Monday, while the Shenzhen Component lost 0.96% to 13,448.3, as weak manufacturing PMI and a global AI selloff outweighed fresh policy support signals from PBoC.

A private survey showed that manufacturing PMI fell to a four-month low in July 2026.

Adding to the uncertainty, recent official data showed the manufacturing PMI unexpectedly slipped into contraction for the first time since February.

A sharp global selloff in AI-related stocks also weighed heavily on sentiment, prompting investors to reassess valuations in China's semiconductor sector.

Cambricon Technologies (-7.05%), SMIC (-6.04%), and NAURA Technology (-6.65%) paced the decline.

Meanwhile, the central bank reiterated its commitment to supporting the economy, including continuing to implement a moderately accommodative monetary policy, making flexible use of policy tools, maintaining ample liquidity, and guiding financial institutions to ensure balanced credit growth.



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