China stocks tumbled on Friday morning following release of weak economic data. A Chinese slump dashes hopes for a global recovery.
Stocks in China tumbled again on Friday, with both the Shanghai and Shenzhen markets down more than 3 per cent.
The benchmark Shanghai Composite Index plunged 3.04 per cent in the morning trading session to close at 3552.82 points.
The Shenzhen Component Index dived 3.79 per cent to close at 12,107.99. The ChiNext Index, tracking China’s Nasdaq-style board of growth enterprises, slumped 4.79 per cent to end at 2,388.71.
Companies in public transportation, communication, and highways lost the most.
The preliminary Caixin/Markit China Manufacturing Purchasing Managers’ Index (PMI) stood at 47.1 in August, the lowest point since March 2009.
The flash index is published on a monthly basis ahead of final PMI data, making it the earliest available indicator of manufacturing sector operating conditions in China.
A reading above 50 indicates expansion, while a reading below that represents contraction.
And with the world’s second largest economy, China, looking uncertain at the moment, there is a fear that a decade of positive growth in Asia, Latin America and Africa could be gradually overwritten in the short term as capital outflow surges.
TBP and Agencies