China shares fall more than 8% on growth concerns
Shanghai (AsiaNews/Agencies) – Shares in mainland China have recorded their biggest one-day fall for more than eight years following a sell-off towards the end of the trading day.
The Shanghai Composite closed down 8.5% at 3,725.56 after more weak economic data raised concerns about the health of world's second largest economy.
Profit at China's industrial firms dropped 0.3% in June from a year ago.
That followed data on Friday indicating that factory activity in July saw its worse performance for 15 months.
Bernard Aw, market strategist at trading firm IG, said the surprisingly weak manufacturing data "added to worries that there could be further weakness in the Chinese economy, after the patch of recent economic data showed signs of stability".
The Shanghai market's fall was the biggest one-day loss since February 2007.
Even the already excessive growth of the Shanghai market had triggered some doubts. In 12 months the China stock markets- Shanghai and Shenzhen, to which Hong Kong was later added - had made gains of 150%, a rise largely attributable to the flow of public money that Beijing has injected into the markets.