Equities slump on concerns about economic growth
Domestic stocks fell on Thursday, sending the benchmark index to its biggest drop in a week, on growing concern government efforts to shore up economic growth will be insufficient. Financial and commodity companies led the declines. Jiangxi Copper Co and Aluminum Corp of China Ltd paced losses for metal companies, sliding at least 2 percent. Datong Coal Industry Co slumped 4.2 percent. China Vanke Co, the nation’s biggest listed developer, dropped to the lowest level in three weeks. SAICMotor Corp, the largest carmaker, gained 4 percent after reporting higher first-half profits. The Shanghai Composite Index retreated 0.7 percent to 2,206.47 at the close. China is unlikely to introduce any “meaningful” stimulus even afterWednesday’s disappointing credit data because the government is content with the slower pace of economic growth, according to Credit Suisse Group AG. is the first adjustment to the guidelines since 2010. The banking regulator will rate trust companies on terms of risk, asset and compliance management, and classify companies at six different levels. The results of the rating will affect CBRC’s regulatory planning for trust companies, allocation of regulatory resources, and corresponding regulatory measures, the Shanghai-based newspaper reported. A trust company’s ability to manage its reputation as part of asset management will be assessed along with other aspects such as the management of investor and public relations, and brand building. Financial industry insiders said the new guidelines would polarize trust companies.