The rebound in the Chinese market slows as the benchmark falls for the third day in a row

Chinese stocks fell for a third consecutive day, jeopardizing a week-long rally since the benchmark index entered a bear market last month, the prospects for economic growth and trade frictions with the US. United States shaking investor confidence. The Shanghai Composite Index fell 0.6% on Tuesday, posting a 1.4% loss over three days. The downtrend has erased more than a third of the gain on the template since the stock rebound almost two weeks ago. Energy and materials producers led the decline in the wider market. Hong Kong's Hang Seng index fell to a record low in nearly nine months.

Mainland China's stock sales resumed after Monday's official data showing that economic expansion had slowed in the second quarter and that ending soon. Brokers, including Shenwan Hongyuan Group, said the Chinese economy could face further downside risks for the rest of the year and policymakers would take steps to reduce reserves. banks and increase their loan quotas to counter the slowdown. Wei Wei, Huaxi Securities

"There is a lack of trust among investors and they are doing transactions in the very short term rather than holding shares for a long time," said Wei Wei, a trader at Huaxi Securities in Shanghai [19659002] "They are not optimistic about the market outlook and believe that there is a dark prospect of the economy and that the trade war will last long enough."

Shanghai Composite lost 15.92 points to 2,798.13 in closing. It remains down 21% from its January high, exceeding the drop often seen by technical analysts as a bear market start.

Oil and coal producers retreat in three weeks in New York. PetroChina, the largest oil producer in the country, lost 2.5% to 7.30 yuan. China Petroleum and Chemical, also known as Sinopec, lost 2.1% to 6.20 yuan. Yanzhou Coal Mining fell 3.3 percent to 11.50 yuan and Shaanxi Coal Industry slipped 2.3 percent to 7.39 yuan.

Pharmaceutical and consumer staples, the best performing sector this year, also fell. Shede Spirits slid 3.5% to 33.91 yuan and the Anhui Gujing distillery fell 3% to 96.95 yuan. Changsheng Bio-technology fell the daily limit of 10 percent for a second day to 19.89 yuan because the company received a letter of information from the Shenzhen Stock Exchange after the local government has him ordered to stop the production of vaccines against forgery. 19659002] The chicken-stocking stocks jumped on optimism that the low inventory of chicks will drive up prices. Shandong Xiantan jumped 10 percent to 14.69 yuan and Shandong Yisheng Breeding and Poultry Breeding jumped 10 percent to 21.80 yuan.

In Hong Kong, the Hang Seng index fell 1.3%, or 357.98 points, to 28,181.68, the lowest closing since October 2017. The Hang Seng China Enterprises index , or the indicator of the H-share, fell by 1.1%. Sunny Optical Technology Group was the worst performer on the benchmark, with a 6.8% drop to $ 142 HK. Hengan International Group lost 3.9% to HK $ 71.90 and CSPC Pharmaceutical Group lost 3.8% to HK $ 21.80.