Chinese Stocks Post Biggest Slump in Four Months on Growth Concerns

Source: Economic Times

Chinese equities were dragged by growth concerns to slip the most in nearly four months, a day after the Communist Party celebrated its 100th anniversary.

• The CSI300 index declined by 2.8% to 5,081.12, while the Shanghai Composite Index shed 2% to 3,518.76. The two indexes recorded the biggest daily drop since March.
• The biggest declines were seen in consumer, healthcare, and brokerage shares. Property shares also slipped.
• A number of investors sold positions, along with the People’s Bank of China, which reported a net withdrawal of liquidity.
• Analysts believe the market is waiting for a catalyst to spur growth as uncertainties remain ahead of the earnings releases.
• Consumption activities were also hit by the resurgence of the COVID-19 pandemic, as seen in data on air travel, spending, auto sales, and overall consumption.
• Wednesday data indicated a decline in manufacturing to a four-month low in January, mirrored by the decline of the non-manufacturing index.