Selling spree resumes for Chinese stocks

Selling spree resumed for Chinese stocks amid weak global cues as continued trade frictions with the US and lack of buying momentum hurt the sentiments. Asian markets started the new quarter on a languid note as investors looked ahead to a deadline when tariffs from both Washington and Beijing are expected to take effect. The Shanghai composite index dropped 2.50% while the Shenzhen composite shed 1.60%. The Blue chip companies CSI 300 index tanked nearly 3% on the day, marking yet another gruesome session for the Chinese equities after the recent turmoil that has taken the stocks near their two year lows.

The economic cues continued to be weak for China. China manufacturing sector expanded in June with a manufacturing PMI score of 51.0, the latest survey from Caixin revealed on Monday. That's down from 51.1 in May, although it remains above the boom-or-bust line of 50 that separates expansion of contraction. Data out last week showed that China's industrial profit rose 21.1% year-over-year in May, slower than the 21.9% increase in April. In the first five months of this year, industrial profits advanced 16.5% annually compared with a 15% rise in the first four months.

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