SHANGHAI :
China’s Stock Exchanges Close Down as Markets Adjust to July’s Drop in Money Supply
Liao Shumin
DATE:  Aug 12 2020
/ SOURCE:  Yicai
China’s Stock Exchanges Close Down as Markets Adjust to July’s Drop in Money Supply China’s Stock Exchanges Close Down as Markets Adjust to July’s Drop in Money Supply

(Yicai Global) Aug. 12 -- China’s benchmark stock indexes closed down today, as the market adjusts to recently released key money supply indicators for July that came in lower than expected.

July’s M2 broad money supply contracted for the first time since February, according to data released by the National Bureau of Statistics yesterday. M2 money supply grew 10.7 percent year on year, 0.4 percentage points less than in June, it added.

The pullback exceeded analysts’ expectations. Twenty-six chief economists polled by Yicai Global had expected M2 money supply to grow by 11.12 percent from a year earlier.

The Shanghai Composite Index slid 0.63 percent to end the day at 3,319.27. The Star 50 Index, which tracks technology growth stocks on the Shanghai Stock Exchange’s Nasdaq-style Star board, fell 2.23 percent to 1,458.64.

The Shenzhen Component Index dipped 1.17 percent to 13,308.52. The ChiNext Price Index, which tracks growth enterprises listed in Shenzhen, was down 1.98 percent at 2,635.50.

Editor: Kim Taylor

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Keywords:   Chinese Stock Markets