China Stocks Slide as Industrial Profits Slow Down

China stocks closed down on Thursday due to slower industrial profit growth in May, with energy and tech shares dragging Hong Kong stocks. Investors await Sunday's manufacturing data, while expectations of contraction in June's manufacturing activity add gloom to an already struggling economy.

China stocks closed down on Thursday as the country's industrial profits rose at a much slower pace in May, while investors awaited manufacturing activity data due on Sunday. Energy and tech shares dragged Hong Kong stocks down.

** China's industrial profits rose at a sharply slower pace in May, underlining the struggles faced by the world's second-largest economy as weak domestic demand crimps overall growth. ** China's blue-chip CSI300 Index dropped 0.8%, while the Shanghai Composite Index lost 0.9% by market close. Hong Kong benchmark Hang Seng was down 2.1%.

** Property shares in China and Hong Kong were not reacting positively after Beijing announced steps on Wednesday to reduce the cost of buying a home. ** Meanwhile, investors are expecting that China's manufacturing activity likely contracted for a second month in June, a Reuters poll showed.

** At the close, the Shanghai Composite index was down 0.9% at 2,945.85. ** The blue-chip CSI300 index was down 0.75%, with its financial sector sub-index higher by 0.03%, the consumer staples sector down 0.39%, the real estate index down 2.62% and the healthcare sub-index down 1.5%.

** The smaller Shenzhen index ended down 1.67% and the start-up board ChiNext Composite index was weaker by 1.586%. ** Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.48%, while Japan's Nikkei index closed down 0.82%.

** At 07:15 GMT, the yuan was quoted at 7.2689 per U.S. dollar, 0.03% weaker than the previous close of 7.2667. ** At the close of trade, the Hang Seng index was down 373.46 points or 2.06% at 17,716.47. The Hang Seng China Enterprises index fell 2.37% to 6,324.05.

** The sub-index of the Hang Seng tracking energy shares dipped 4.1%, while the IT sector declined 2.41%, the financial sector ended 1.09% lower and the property sector dipped 3.11%.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)