02.02.202602:33:23UTC+00China Stocks Slip After Manufacturing Data

The Shanghai Composite Index decreased by 0.4%, reaching approximately 4,100, while the Shenzhen Component Index saw a decline of 0.8%, settling at 14,090 on Monday. This downturn continued the negative trend from the prior trading session as investors assessed the January manufacturing data. A private sector survey indicated that factory output not only grew faster last month but also showed manufacturers increasing production and dispatching shipments in anticipation of the lengthy Lunar New Year break. This robust figure has lessened the likelihood of immediate policy intervention from Beijing. However, an official survey published over the weekend revealed an unexpected drop in both the manufacturing and services sectors. The mining industry bore the brunt of the losses due to a sell-off in metals, with significant declines witnessed in companies such as Zijin Mining, which fell by 5.2%, CMOC Group which dropped by 4.1%, and Hunan Gold which plunged by 6.7%. The technology sector also felt the strain, affecting stocks like Zhongji Innolight, which decreased by 5%, Suzhou TFC by 2.5%, and BlueFocus Intelligent by 3.1%.