Chinese stock market investors, perhaps discouraged by a raft of economic data beats that will likely diminish the chance of further aggressive monetary policy easing, are heading for the exits.
At the midday break the benchmark Shanghai Composite index was off 2.40%, extending its losses for a second consecutive session. From a year earlier the index remains higher by 85%.
The CSI 300 index, the 300 largest firms on the Shanghai and Shenzhen bourses, is also down 2.43%.
Small-cap stocks, having outperformed over the past three sessions, are once again under pressure. The Shenzhen Composite, CSI 500 and ChiNext indices finished the morning session lower by 2.30%, 3.39% and 2.78% respectively.
In a statement released after China’s Q2 GDP release, the National Bureau of Statistics noted that recent forceful measures to support the nation’s stock market, something they deem to be crucial in stabilising China’s economy, were showing results.
Perhaps they spoke too soon.