|China's Stock Market Becomes Second Worst Global Performer As Economy Continues To Weaken|
|Friday, August 31, 2012 04:44|
China’s stock market may soon record the longest monthly losing streak since 2004. Corporate earnings are declining and there is little optimism that they will improve by the end of the year.
China’s economy is slowing and the country’s Shanghai Composite is down 7.8% during the current quarter with 2.5% of that happening in the month of August.
This makes China’s market the second worst performer across the globe. Analysts note that it will take longer for corporate earnings to turn than for the economy to recover.
China’s Purchasing Managers’ Index report is due on Friday, August 31. It is expected to have fallen from 50.1 to 50 in July.
The Bloomberg China-US 55 Index (CH55BN) reflects the most-traded US-listed Chinese companies. The index fell .9% in New York in trading on August 30. The rating on the MSCI China Index was lowered from overweight to neutral by Macquarie Capital Securities, citing the breadth of the weakness in the Chinese economy was disturbing.