Chinese Stocks Tumble Amid Consumer Spending Slump

Chinese stocks experienced a decline on Monday due to unexpected weakness in consumer spending and reduced investor confidence. The blue-chip CSI300 index decreased further after last week's decline. Despite slower retail growth and weak bank lending, the government signals readiness for monetary easing to stimulate the economy.

On Monday, Chinese stocks took a hit as data revealed an unanticipated downturn in consumer spending. Investors are increasingly hopeful for additional policy interventions to stimulate the sluggish growth.

At midday, the blue-chip CSI300 index dropped by 0.37%, adding to last week's 1% decrease. Meanwhile, the Shanghai Composite Index saw a slight increase, up 0.1% to 3,395.11 points, as sectors like consumer staples, real estate, and healthcare saw notable declines.

The news of slower-than-expected growth came as China's Politburo emphasized a "moderately accommodative" monetary policy. The People's Bank of China might implement a reserve requirement ratio cut to boost the economy. The lack of expected growth was reflected across Asia, with regional markets also reflecting weaker performances.

(With inputs from agencies.)