China Equities Fall Sharply as Money Supply Slows

China’s stocks fell, sending the benchmark index to its biggest loss in two weeks, after Premier Li Keqiang indicated money-supply growth slowed last month.

China Vanke Co. and Poly Real Estate Group Co. both slid 2.2 percent to lead declines for property developers. Apple Inc. suppliers Suzhou Anjie Technology Co. (002635) and Han’s Laser Technology Co. slumped at least 3.1 percent after the iPhone maker introduced new products. Ningbo Port Co. rose to a three-year high on speculation the government will set up more free-trade zones with neighboring countries.

The Shanghai Composite Index (SHCOMP) dropped 0.7 percent to 2,310.79 as of 1:12 p.m. M2, the government’s broadest measure, rose 12.8 percent, Premier Li said yesterday in Tianjin, the Xinhua News Agency reported ahead of the official release by the People’s Bank of China. That compares with a 13.5 percent pace in July, which was also the median estimate for August. The slowdown in money-supply expansion follows July’s plunge in new credit to the lowest level since 2008.

Bloomberg

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