China stocks fall economic slowdown worries; brokerages jump
Northeast Securities Co, Dongxing Securities Co, Shenwan Hongyuan Group Co, and Western Securities Co all booked gains on Friday morning. China's Neeq Component Index, which tracks companies listed on Beijing's New Third Board, jumped 2.45% by midday.
China and Hong Kong shares slipped on Friday, dragged by rising concerns about a slowdown in the world's second-largest economy, while brokerage stocks outperformed the market after China planned for a new stock exchange.
At the midday break, the Shanghai Composite index was down 0.15% at 3,591.53, while China's blue-chip CSI300 index fell 0.2%.
The smaller Shenzhen index was down 0.46%, the start-up board ChiNext Composite index was weaker by 0.71%. However, Shanghai's tech-focused STAR50 index was up 0.23%.
Sentiment remained weak after a private survey showed activity in China's services sector slumped into sharp contraction in August, as the Delta variant curbs threatened to derail the recovery in the broad economy.
However, brokerage shares jumped 0.98% after China's President Xi Jinping said on Thursday the country would set up a stock exchange in its capital, Beijing, to serve small and medium-sized enterprises (SMEs).
Northeast Securities Co, Dongxing Securities Co, Shenwan Hongyuan Group Co, and Western Securities Co all booked gains on Friday morning.
China's Neeq Component Index, which tracks companies listed on Beijing's New Third Board, jumped 2.45% by midday.
"We see this as a step forward in capital market reforms, as it enhances the multi-layered capital market system and direct financing," analysts at Morgan Stanley said in a note.
"Implementation of a registration-based IPO system on a standalone exchange paves way for the rollout of a Main Board registration-based IPO system."
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)