China stocks extend losses as investors assess economic outlook
By Summer Zhen
HONG KONG, July 30 (Reuters) -China's blue-chip stocks retreated for a second day and Hong Kong shares also dropped on Tuesday, as pessimism over China's economic outlook widened while investors remained on the sidelines ahead of key Politburo meeting.
China will release its July official manufacturing survey (PMI) on Wednesday. The country's factory activity likely shrank for a third month in July, a Reuters poll showed on Monday, highlighting a rising urgency for policymakers to release further stimulus as a property crisis and job insecurity drag on growth.
Investors awaited outcome of the upcoming Politburo meeting, which will be attended by China's top leaders, and also cues on whether there will be additional policy stimulus.
Mainland energy stocks listed in A-shares .CSIEN and Hong Kong .HSMOGI led the decline, down more than 2%, respectively, following an overnight drop in oil prices.
** At the midday break, the Shanghai Composite index .SSEC was down 0.52% at 2,876.87 points.
** China's blue-chip CSI300 index .CSI300 was down 0.84%, with its financial sector sub-index .CSI300FS trading lower by 0.37%, the consumer staples sector .CSI000912 slipped 1.43%, the real estate index .CSI000952 down 0.29% and the healthcare sub-index .CSI300HC down 0.83%.
** Chinese H-shares listed in Hong Kong .HSCE fell 1.4% to 5,996.46, while the Hang Seng Index .HSI was down 1.2% at 17,038.35.
** The smaller Shenzhen index .SZSC was down 0.22%, the start-up board ChiNext Composite index .CNT was weaker by 0.41% and Shanghai's tech-focused STAR50 index .STAR50 was flat for the day.
** Around the region, MSCI's Asia ex-Japan stock index .MIAPJ0000PUS was weaker by 0.48% while Japan's Nikkei index .N225 was down 0.31%.
** The yuan CNY=CFXS was quoted at 7.2612 per U.S. dollar, 0.01% weaker than the previous close of 7.2605.
Reporting by Summer Zhen; Editing by Sherry Jacob-Phillips
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