China’s Benchmark Stock Index Dips Almost 3% as Growth Concerns Intensify

Growth fears contributed to a 2.8% plunge in China’s CSI 300 index on Friday, the worst in almost four months.

Source: Economic Times

CSI 300 is down -2.84%, SSE Composite Index is down -1.95%.

The plunge also saw the Shanghai Composite Index shed 2% to trade at 3,518.76, the biggest drop since the start of March.

The plunge in China’s stocks happens a day after the communist party held its centenary, with macro growth concerns and earnings recovery overshadowed by uncertainties.

Morgan Stanley analysts now say the market is looking for clearer signs before making bullish turns.

Morgan Stanley has relied on broader macro weaknesses witnessed in April to June to lower China’s second-quarter growth.

With Beijing less likely to unveil new stimulus to support growth, investors fear credit tightening, adding pressure to stocks.