Chinese Shares Plummet Amidst Real Estate and Consumer Sector Downturn

Chinese shares tumbled on Monday, with property developers and consumer staples significantly affected. Vanke reported a substantial net loss, contributing to the market's decline. The Shanghai Composite and CSI300 indices both fell, and major property firms saw considerable drops. Consumer shares also retreated after recent highs.

Chinese shares experienced a notable downturn on Monday, with property developers shedding recent gains following disappointing domestic home price data. Major state-backed developer Vanke reported a net loss exceeding $1 billion in the first half, exacerbating market sentiment. By midday, the Shanghai Composite index had fallen by 0.6% to 2,824.50 points.

The blue-chip CSI300 index declined by 1.2%, while the consumer staples sector and the food and beverage index dropped by 2.5% and 2.7% respectively. Hong Kong-listed Chinese H-shares slid 1.8% to 6,212.19, and the Hang Seng Index fell by 1.7% to 17,670.72.

Mainland Chinese property shares declined by 3.3%, and Hong Kong-listed developers lost nearly 5% as investors took profits following a rally on Friday spurred by reports of new policy support. Notably, China Resources Land and China Overseas Land & Investment saw sharp declines. The Hang Seng's largest loser was New World Development, which plummeted by 13.4%.

(With inputs from agencies.)