Shanghai Composite Index shares suffer amid disappointing Chinese economic data

 
Jessica Morris
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Mainland Chinese shares have lost nearly 40 per cent since its peak in mid-June (Source: Getty)

Chinese shares came under pressure again today, after disappointing economic data stoked concerns that the world's second-largest economy is losing momentum.


The Shanghai Composite Index closed down 2.7 per cent, taking it to 3,114.80 points, also constituting the sharpest one-day drop since late August.

Mainland Chinese shares have shed nearly 40 per cent since its peak in mid-June.

Economic data released over the weekend showed fixed-asset investment and industrial production disappointed in August, while retail sales beat expectations.

"Chinese data out over the weekend provided a familiar view of its divergent two-speed economy, as consumption continues to do well while industrial production and investment slow," Angus Nicholson, market analyst at IG, said.


The sell-off comes ahead of the widely anticipated US Federal Reserve interest rate decision on Thursday. China and the emerging markets will be particularly hard hit by an eventual rate hike by the Fed, as they have high levels of dollar-denominated debt.

At the same time, today's sell-off was mild, compared to some of the one-day losses sustained so far this year.

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