(Bloomberg) — A key Chinese stock gauge neared a closely watched threshold as concerns deepened over the state of the nation’s financial sector.
The Shanghai Composite Index pared losses to 0.3%, closing just above the key support level of 2,800. The gauge fell below the threshold intraday. Banks led the declines, with Agricultural Bank of China Ltd. and Industrial & Commercial Bank of China Ltd. falling more than 3% each.
Financial shares have been a bright spot in China’s equity rout this year thanks to state support and near record-low bond yields. A sub-gauge of lenders among CSI 300 firms have gained 3.8% in 2024 compared to declines in the benchmark.
“The selloff could have been triggered by disappointment toward first half results, in which five out of six state banks reported profit declines,” said Francis Chan, an analyst at Bloomberg Intelligence. “Some investors could also be taking profits, after the sector…
