A selloff in Chinese banks deepened, while minutes from a Federal Reserve meeting showed officials still favor more tightening this year, SCMP reports.

Goldman Sachs’ downgrading of top Chinese lenders, including ICBC and the Agricultural Bank, sparked an extended selloff in banking stocks.

Investors had low expectations for policy easing and structural reforms in 2023, Goldman Sachs said in a survey of its local clients. Local clients viewed these additional easing measures as reducing growth headwinds rather than generating strong growth.

Reportedly, the Yuan weakened the most in a week to a seven-month low.

China’s services sector grew slowly in five months in June.

Most investors doubted China would contribute significantly to accelerating global economic activity over a 12-month horizon, BCA Research said in a client survey. 

Stock Connect data shows foreign investors sold $360 million of yuan-denominated shares last quarter.

Price Action: BABA shares traded lower by 1.72% at $82.85 premarket on the last check Thursday.