Shanghai stocks were on track to close at one-month lows on Friday, as anaemic growth in China’s service sector in October broadened worries of an economic slowdown, prompting selling in almost all major sectors.
China’s blue-chip CSI300 index was down 0.5 per cent, to 3,977.44 points at the end of the morning session, while the Shanghai Composite Index had lost 0.7 per cent, to 3,358.42 points, reports Reuters.
A private survey showed on Friday that activity picked up slightly in China’s services sector in October but growth remained modest and much weaker than historical trends.
Investors sold shares nearly across the board, with resources, real estate and industrial firms among the biggest casualties.
Bucking the trend, companies that directly or indirectly participated in Qihoo 360 Technology’s privatisation scheme surged after the announcement of a Shanghai backdoor listing plan by the anti-virus software maker previously listed in the U.S.
Companies seen benefiting from the Shanghai listing plan include Citic Guoan, Hunan TV & Broadcast Intermediary and Zhongnan Red Cultural Group.