China stocks erase gains on slowdown concerns
Updated: 2012-08-24 16:07
BEIJING -- Chinese stocks closed lower Friday, ending a rebound for two straight trading days over concerns for a further cooling growth in the world's second largest economy.
The benchmark Shanghai Composite Index moved down 0.99 percent, or 20.97 points, to close at 2,092.1.
The Shenzhen Component Index finished at 8,579.28, down 1.73 percent, or 151.27 points.
Market sentiments were weighed down after a survey released by HSBC Corp Thursday showed that China's manufacturing activity weakened in August despite government recent stimulus efforts.
The bank's preliminary China Manufacturing Purchasing Managers Index fell to a nine-month low of 47.8 in August on a scale on which numbers below 50 indicate a contraction.
Manufacturing drops to 9-month low: HSBC
China's manufacturing industry may deteriorate further in August, affected by a faster drop in new orders and no significant signs of any improvement in the global economy, which analysts say could spark Beijing to accelerate plans to ensure growth.
Stock markets continue to be a depressing drag
In this prolonged stock market drought, many rainmakers are chanting the same old prayers beseeching government salvation.