China blue-chips slip as growth outlook falters

SHANGHAI: China blue-chips slipped on Monday after disappointing economic data raised fresh concerns over the outlook for the world's second-largest economy, but expectations of more policy support to bolster a wobbly recovery put a floor under the drop.

** China's factory output and retail sales growth slowed sharply and missed expectations in July, as new COVID-19 outbreaks and floods disrupted business operations, adding to signs the economic recovery is losing momentum.

** At the close, the blue-chip CSI300 index was down 0.1%. The CSI300 industrials sub-index fell 1.11% and the SSE Resource sub-index fell 2.83% on the faltering demand outlook.

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** At the same time, China's central bank injected 600 billion yuan ($92.61 billion) in medium-term loans into the financial system on Monday, more than expected, in what many market participants interpreted as an effort to prop up the economy.

** The Shanghai Composite index inched up 0.03% to 3,517.34.

** Investor sentiment around Chinese tech firms also took another hit following a state media commentary on the weekend calling for stronger vetting of online games and "zero tolerance" toward those that distort history.

** The CSI Info Tech sub-index fell 0.32%.

** The smaller Shenzhen index ended 0.63% lower and the start-up board ChiNext Composite index was weaker by 1.307%.

** Around the region, MSCI's Asia ex-Japan stock index was 0.6% weaker, while Japan's Nikkei index closed 1.62% lower.

** At 0707 GMT, the yuan was quoted at 6.4791 per US dollar, 0.04% weaker than the previous close of 6.4767.

** So far this year, the Shanghai stock index is up 1.3% and the CSI300 has fallen 5.2%, while China's H-share index listed in Hong Kong is down 13.8%.

Shanghai stocks have risen 3.53% this month.