Chinese stock investors are fleeing after strong economic data


For a second consecutive session Chinese stocks have fallen.

Perhaps unnerved by a raft of stronger-than-expected economic data, fundamentally good news for the economy but bad news for those wishing for further monetary policy stimulus from the PBOC, investors, having sold down stocks prior to the data was released, continued to sell with vigour throughout the latter parts of trade.

The benchmark Shanghai Composite index lost 3.02%, extending its two-day loss to 4.15%, with the decline the largest seen since July 8. Yes, it’s just that kind of market!

Energy was the only sector to finish in the green, up 4% on the back of a rise in crude oil prices overnight, while utilities, materials and healthcare all finished lower by more than 6.9%.

Other indices comprising large-cap stocks also suffered with the CSI 300 index slumping 3.54%. The one exception came from the SSEC 50, comprising the 50-largest firms by market capitalisation on the Shanghai exchange, with the index falling by a more modest 0.18%.

Small-cap stocks, having outperformed in recent sessions, were back under the kosh with the Shenzhen Composite, CSI 500 and ChiNext indices closing the session down more than 4%.

Having fallen for two straight sessions, investors, yet again, will be waiting to see what supportive measures policymakers roll out this evening in order to support the market.

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