China Stocks Decline Amid Weak Manufacturing Data

China's stock market declined on Thursday, driven by weakened manufacturing activity and a depreciating yuan. The Caixin/S&P Global manufacturing PMI dropped to 49.8 in July, the lowest since October last year. Additionally, China's property sector continues to face challenges, with contract sales volumes for top developers falling significantly.

China's stock market experienced a downturn on Thursday, following a significant rise in the previous session. This decline was attributed to a private sector survey revealing a contraction in manufacturing activity for the first time in nine months, coupled with a weakening yuan impacting investor sentiment.

The Caixin/S&P Global manufacturing PMI fell to 49.8 in July from 51.8 in June, the lowest level since October of the previous year and below analysts' expectations of 51.5. This reading, primarily reflecting smaller, export-focused firms, aligned with an official survey indicating manufacturing activity at a five-month low.

Meanwhile, Nomura's chief China economist, Ting Lu, projected further declines in China's property sector in the latter half of 2024. Data from the China Real Estate Information Corporation showed a 22.7% year-on-year drop in contract sales volumes for the top 100 developers in July. The Shanghai Composite index closed down 0.22%, while the blue-chip CSI300 index saw a 0.66% decline.

(With inputs from agencies.)