2 Minute Read by Reuters Staff (Reuters) – BEIJING, July 1 (Reuters) – On Thursday, China’s stock market remained quiet, mainly recovering early losses as gains in real estate and banking offset drops in industrial businesses following disappointing factory data. ** The Shanghai Composite index fell 0.07 percent to 3,588.78 at the closing, while the blue-chip CSI300 index rose 0.11 percent after plunging as much as 0.62 percent earlier. ** The industrial sub-index fell 1.53 percent and the energy sub-index fell 0.74 percent, respectively, among the worst-performing sectors. ** Factory activity in China grew at a slower pace in June, according to data, as the reappearance of COVID-19 cases in the export province of Guangdong, as well as supply chain issues, drove output growth to its lowest level in 15 months. ** The manufacturing sector has progressively returned to normal, but obstacles remain, according to Wang Zhe, senior economist at Caixin Insight Group. ** On the plus side, the real estate and banking sectors both climbed by 4.32 percent and 1.96 percent, respectively, lifting blue-chip shares. * Investors remained wary about certain sectors’ exorbitant values. “The fundamentals of new energy automakers and supply chain companies are good,” said Wang Qi, CEO of MegaTrust Investment. “However, investors, including ourselves, have certain value worries” (HK). ** Investors are keeping a close eye on the first-half results season, which will have a big impact on the market outlook and sentiment for the remainder of the year, according to Wang Qi. ** The start-up board and the smaller Shenzhen index both fell 0.83 percent. The ChiNext Composite index fell 0.63 percent.** Around the region, MSCI’s Asia ex-Japan stock index down 0.35 percent, while Japan’s Nikkei index fell 0.29 percent. Thursday is Hong Kong Special Administrative Region Establishment Day, hence the stock market is closed. Cheng Leng, Luoyan Liu, and Andrew Galbraith contributed reporting, while Amy Caren edited the piece. Daniel/n
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