China Stocks Start August on a Sour Note

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

The Shanghai Composite fell 0.5% to 3,813 on Monday, while the Shenzhen Component declined 0.8% to 13,467, as weak manufacturing data overshadowed fresh policy support signals from Beijing.

A private survey showed that the manufacturing PMI fell to a four-month low of 50.9 in July from 51.7 in June, missing forecasts of 51.5.

Adding to the weakness, official figures showed that the manufacturing PMI unexpectedly slipped to 49.2 from 50.3, marking the first contraction since February.

Meanwhile, the People's Bank of China 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.

Financial stocks led the decline, particularly Industrial and Commercial Bank of China (-2%), Agricultural Bank of China (-3%), and China Construction Bank (-1.1%).



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China Stocks Start August on a Sour Note
The Shanghai Composite fell 0.5% to 3,813 on Monday, while the Shenzhen Component declined 0.8% to 13,467, as weak manufacturing data overshadowed fresh policy support signals from Beijing. A private survey showed that the manufacturing PMI fell to a four-month low of 50.9 in July from 51.7 in June, missing forecasts of 51.5. Adding to the weakness, official figures showed that the manufacturing PMI unexpectedly slipped to 49.2 from 50.3, marking the first contraction since February. Meanwhile, the People's Bank of China 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. Financial stocks led the decline, particularly Industrial and Commercial Bank of China (-2%), Agricultural Bank of China (-3%), and China Construction Bank (-1.1%).
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