Mainland stocks fell to their lowest levels in over a year on Tuesday, following lower-than-expected results from a Chinese services index and news that the US labor market remained stagnant last month, Bloomberg reported. A Chinese services industry index reported by HSBC (HBC.NYSE, HSBA.LSE, 005.HK) and Markit Economics on Monday revealed that the reading for August dropped to 57.6, down from 59.6 in July, indicating slowing growth in the sector; a reading above 50 indicates expansion. The benchmark Shanghai Composite Index slumped 2%, reaching its lowest level since July 2010. Meanwhile, China International Capital Corp, the country’s biggest investment bank, said that investors should prepare “for more pain” in markets as China’s tight monetary policy looks set to continue weighing on growth.
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