China shares fall on weak credit data

SHANGHAI: China and Hong Kong stocks fell on Monday as investor sentiment remained subdued after disappointing credit data added to worries about China’s slowing economy, compounded by property shocks.

China’s blue-chip CSI300 Index and the Shanghai Composite Index closed down 0.7% and 0.3%, respectively. The Hong Kong benchmark Hang Seng Index was down 1.6%.

China’s new bank loans tumbled in July and other key credit gauges also weakened, even after policymakers cut interest rates and promised to roll out more support for the faltering economy.

Following softer July Purchasing Managers’ Index (PMI) data, the deeper contraction in trade data, outright deflation, and slower credit growth reaffirmed weak growth in July, analysts at Barclays said in a note, adding that they expect this week’s activity data to also paint a gloomy picture.