China’s stocks fell, extending the biggest two-month tumble since 2008, after an official factory gauge slumped to a three-year low and concern grew that government intervention to shore up equities will fail.
The Shanghai Composite Index slid 1.2 percent to 3,166.62 at the close, paring a loss of as much as 4.8 percent. Rallies for large bank and oil shares propped up the stock market, with more than 1,000 companies in the Shanghai and Shenzhen bourses plunging by the 10 percent daily limit. The official Purchasing Managers’ Index was 49.7 for August, down from 50 in July. Numbers below 50 indicate contraction.
