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China: Stocks fall as weak yuan adds to growth worries

Friday, July 8, 2016 - 15:40
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[HONG KONG] China stocks fell on Friday as lingering anxiety over the Brexit vote and weakness in the yuan added to worries over a fragile domestic economic recovery.

The mainland's blue-chip CSI300 index fell 0.6 per cent to 3,192.28 points, and the Shanghai Composite Index slid 1.0 per cent to 2,988.09, in their biggest intraday of percentage drop since June 24.

For the week, the blue-chip CSI300 index rose 1.2 per cent, and the Shanghai Composite Index ended the week up 1.9 per cent in their second straight week of gains.

While Beijing is expected to offer more stimulus to spur activity, investors remain wary amid a global backdrop of Brexit-driven uncertainty and other external headwinds.

The yuan slipped against the dollar on Friday, heightening worries that a weakening yuan could trigger more capital outflows in coming months.

Listed Chinese firms other than those in the finance sector are in their worst financial shape in a decade, a research body under China's Ministry of Commerce said.

Stocks fell in major sectors in consumer, banks , resources, and healthcare.

REUTERS