China, Hong Kong stocks fall after Politburo meeting, weak factory data
In the much-anticipated Politburo meeting, top leaders pledged to support the economy by managing 'disorderly competition', but showed no sense of urgency to roll out big stimulus.
Meanwhile, fresh data showed China's manufacturing activity shrank for a fourth straight month in July as demand at home and abroad weakened.
Investors were also anxiously awaiting progress in U.S.-China trade talks with the truce deadline approaching, now that neighbouring South Korea has struck a deal and lowered tariff levels.
The policy meeting did not reveal a fundamental shift in policy thinking on growth, which could be a potential letdown for some investors, while the trade talks also failed to deliver much details, Citibank's chief China economist Xiangrong Yu said in a note.
'The events could weigh on near-term market sentiment, more or less,' the economist said.
At the midday break, the Shanghai Composite index was down 0.7% at 3,591.26 after closing at a nine-month high in the previous session.
The blue-chip CSI300 index declined 1.1%, heading for its biggest single-day drop in nearly four months.
In Hong Kong, the benchmark Hang Seng Index was down 1.1% at 24,906.39.
Leading declines, the real estate index, fell 3.5% onshore and 3.7% in Hong Kong.
Commodities-related shares fell further, with steel , coal and materials down 2.8% to 3.3%.
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