At close of trade, the benchmark Shanghai Composite Index fell 0.44%, or 14.39 points, to 3,252.20. The Shenzhen Composite Index, which tracks stocks on China's second exchange, dropped 0.92%, or 19.65 points, to 2,117.96. The blue-chip CSI300 index sank 0.74%, or 31.50 points, to 4,222.60.
Activity in Chinese manufacturing and services simultaneously contracted in March for the first time since the height of the country's COVID-19 outbreak in 2020. The NBS Manufacturing PMI fell to 49.5 in March from 50.2 in the previous month. The NBS Non-Manufacturing PMI suffered a sharper drop to 48.4 in March, from the previous reading of 51.6.
The world's second-largest economy is now at the risk of slowing sharply as authorities restrict production and mobility in many cities, including Shanghai and Shenzhen, to stamp out fresh COVID-19 outbreaks.
CURRENCY NEWS: China's yuan was down against the U.S. dollar despite firmer mid-point fixing by the central bank as fresh signs of economic slowdown and worries over wider disruption resulting from a recent COVID-19 resurgence. Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.3482 per dollar, 84 pips firmer than the previous fix 6.3566. In the spot market, the yuan CNY=CFXS was trading at 6.3495 at midday, 10 pips weaker than the previous late session close.
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