China stocks fell on Friday as lingering anxiety over the Brexit vote and weakness in the yuan added to worries over a fragile domestic economic recovery. The mainland's bluechip CSI300 index fell 0.6 percent to 3,192.28 points, and the Shanghai Composite Index slid 1.0 percent to 2,988.09, in their biggest intraday of percentage drop since June 24. For the week, the bluechip CSI300 index rose 1.2 percent, and the Shanghai Composite Index ended the week up 1.9 percent in their second straight week of gains.
While Beijing is expected to offer more stimulus to spur activity, investors remain wary amid a global backdrop of Brexit-driven uncertainty and other external headwinds. The yuan slipped against the dollar on Friday, heightening worries that a weakening yuan could trigger more capital outflows in coming months. Listed Chinese firms other than those in the finance sector are in their worst financial shape in a decade, a research body under China's Ministry of Commerce said.
Stocks fell in major sectors in consumer, banks, resources, and healthcare. Potential trouble in Europe - one of China's major export markets - could exacerbate pressure on the mainland economy as a recovery struggles to gain momentum. The headwinds are aplenty. Listed Chinese companies other than those in the finance sector are in their worst financial shape in a decade, a research body under China's Ministry of Commerce said. It said an index which tracks the health of 2,560 non-finance listed companies is expected to fall to a decade-low this year, which would be the fastest on-year drop in five years.
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