Shanghai's benchmark stock index ended today with a 0.44 percent decline to
2,230.46 points. Shares of banks and brokerages fell dramatically while media
shares soared.
The HSBC Flash China Manufacturing Purchasing Managers' Index, the earliest
available indicator of China's industrial sector, moderated to 50.3 in August,
down sharply from the final reading of 51.7 in July, marking a three-month
low.
This sign of a weak economy would push the People's Bank of China to offer
loosened monetary and fiscal policies, which will possibly reduce the stability
in the financial sector, with banks crippled by a lower deposit rate, analysts
said.
Shanghai Pudong Development Bank lost 1.45 percent to 9.50 yuan, while China
Citic Bank dropped 1.36 percent to 4.34 yuan.
The national policy released on Monday to develop new media still has a huge
impact on the sector.
Four companies surged by the maximum daily limit of 10 percent, including
ZheJiang Daily Media, Northern United Publishing & Media, Jiangsu Phoenix
Publishing & Media Corporation and Shanghai Xinhua Media.