China stocks traded in the U.S. were poised to fall on Friday amid fresh signs that the world’s second-biggest economy is struggling.
Alibaba
traded down 0.7% in the premarket.
JD.com
was down 0.3%. Hong Kong’s Hang Seng Index closed 0.1% down.
Data from purchasing managers index surveys showed manufacturing is still in contraction and the growth of services is softening. Employment fell in both. While the figures were weak, they didn’t raise much hope that the government and central bank would make further efforts to stimulate growth—which has been disappointing since the country lifted Covid-19-era restrictions on activity.
The central bank has recently cut several key interest rates, but it has been cautious not to do too much as the country copes with an unsteady real estate market. The government has also been reluctant to step up spending. A burgeoning technology cold war between the U.S. and China isn’t helping sentiment.
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