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China: Stocks fall on weak factory activity, some investors stay away

Monday, August 3, 2015 - 15:33
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Shanghai shares fell on Monday as a survey showed weak factory activity and some investors stayed on the sidelines after mainland stocks suffered their worst monthly loss in six years in July.

[HONG KONG] Shanghai shares fell on Monday as a survey showed weak factory activity and some investors stayed on the sidelines after mainland stocks suffered their worst monthly loss in six years in July.

The Shanghai Composite Index lost 1.1 per cent to end at 3,622.99 points.

The CSI300 index of the largest listed companies in Shanghai and Shenzhen returned to positive territory in late trade, rising 0.33 per cent to 3,829.24.

Factory activity in China shrank more than initially estimated in July, contracting by the most in two years, a private survey showed on Monday.

An official survey showed on Saturday that growth at China's big manufacturing companies unexpectedly stalled in July as demand at home and abroad weakened.

China's markets regulator has suspended a trading account of US-based hedge fund Citadel LLC, the fund said on Monday, in the watchdog's first known move against a big foreign investor as it battles to prop up China's ailing stock markets.

Ningbo Marine was the biggest loser in the Shanghai index, falling 10 percent, while Xinjiang Qingsong Building Materials topped the list of gainers, rising 10.08 per cent.

In Shenzhen, Changsha Tongcheng Holdings tumbled 10 per cent and Gansu Jingyuan Coal Industry rose by that percentage.

REUTERS