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.