China and Hong Kong shares fall on weak credit data

China and Hong Kong stocks fell on Monday as investor sentiment remained subdued after disappointing credit data added to worries about China's slowing economy, compounded by property shocks. ** China's blue-chip CSI300 Index and the Shanghai Composite Index dropped 1.3% and 1.0%, respectively, by the lunch break.

China and Hong Kong stocks fell on Monday as investor sentiment remained subdued after disappointing credit data added to worries about China's slowing economy, compounded by property shocks.

** China's blue-chip CSI300 Index and the Shanghai Composite Index dropped 1.3% and 1.0%, respectively, by the lunch break. The Hong Kong benchmark Hang Seng Index was down 2.4%. ** China's new bank loans tumbled in July and other key credit gauges also weakened, even after policymakers cut interest rates and promised to roll out more support for the faltering economy.

** Following softer July Purchasing Managers' Index (PMI) data, the deeper contraction in trade data, outright deflation, and slower credit growth reaffirmed weak growth in July, analysts at Barclays said in a note, adding that they expect this week's activity data to also paint a gloomy picture. ** Analysts at UBS said they expect growth momentum bottoming in the July data announcement on Tuesday, with continued decline in property sales and investment.

** The analysts are also expecting rate cuts to ensure sufficient liquidity and lower financing costs. ** Two Chinese listed companies said over the weekend that they had not received payment on maturing investment products from Zhongrong International Trust Co, adding to stress in a financial market already roiled by a property sector downturn.

** Shares of Nacity Property Service Group and KBC Corp fell as much as about 8% each. ** China's Country Garden, the country's top private property developer, suspended trading of its 11 onshore bonds.

** Shares of the developer hit a record low on Monday. ** Mainland properties traded in Hong Kong were down roughly 3.9%.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)