Stock Decline in China Slows Factories

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shanghai-730891_1280As stock values continue to decline in China, factories slow their production.

The Caixin purchasing managers’ index for July declined to a two-year low and indicated an outright drop in manufacturing, according to data released by Markit, a provider of financial information.

“China will have several hard questions asked of it over the week, feeding into the concern it’s facing a hard landing,” said IG market strategist Evan Lucas in a report.

China’s economy has been buffeted by a massive correction in the country’s overheated stock market. Beginning in June, the Shanghai Composite Index fell more than 30 percent in a matter of weeks after surging roughly 150 percent from late 2014.

Find out more at CBS Money Watch.

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