China stocks slip, typhoon knocks out Hong Kong trading as GDP report pressures Beijing to stimulus economy

Stocks in mainland China declined after an official report showed the economy grew last quarter at a pace below market consensus, while unemployment among the nation’s youth hit a new high. Trading in Hong Kong was cancelled on typhoon warning.

The Shanghai Composite Index dropped 0.9 per cent to 3,209.63 at the close of Monday trading, surrendering most of last week’s 1.3 per cent advance. The CSI 300 Index fell 0.8 per cent.

Longi Green Energy Technology weakened 0.8 per cent to 29.79 yuan, while Kweichow Moutai retreated 1.3 per cent to 1729.97 yuan. Foxconn Industrial slumped 4.2 per cent to 26.11 yuan, Will Semiconductor tumbled 4 per cent to 102.28 yuan and Cambricon Technologies dropped 2.8 per cent to 200.20 yuan.

China’s economy grew at an annual pace of 6.3 per cent in the second quarter, versus 4.5 per cent in the first three months of 2023, the government said on Monday. The pace was slower than the 7.1 per cent consensus by economists, with recent data showing a slide in manufacturing. The jobless rate for people in the 16-24 age group increased to 21.3 per cent in June, from 20.8 per cent in May.

Source: scmp