Update | China stocks retreat from 2-year high as economic data trail estimates and bond sell-off resumes
October data on industrial output and retail sales released by the National Bureau of Statistics both missed analysts’ estimates, while a broader measure of money supply by the central bank grew at the slowest pace on record
Chinese shares slipped back from a two-year high on Tuesday, as government data showed signs of moderation in the nation’s economic growth and the decline in the country’s 10-year treasuries deepened.
The Shanghai Composite Index retreated 0.5 per cent, or 18.29 points, to 3,429.55 at the close. The benchmark closed Monday at its highest level since December 2015.
The CSI 300 Index of big companies dropped 0.7 per cent and the ChiNext gauge of smaller companies slid 0.5 per cent.
Hong Kong’s equity benchmark, the Hang Seng Index, finished slightly lower after swinging between gains and losses for most of the day.
Trading volumes on the Shanghai exchange were 18 per cent above the 30-day average while those in Shenzhen were 7.5 per cent higher, according to data compiled by Bloomberg.
The market is facing double pressure of weakening economic data and tight liquidity as is indicated from the bond market. It looks like it’s taking time out for a breather
October data on industrial output and retail sales released by the National Bureau of Statistics both missed analysts’ estimates, while a broader measure of money supply unveiled on Monday after the market closed by the central bank, grew at the slowest pace on record.
