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China Shares Open Lower as Factory Growth Slows, Middle East Tensions Weigh

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Chinese shares opened lower on Monday as the country's factory expansion eased and investors remained cautious over geopolitical developments in the Middle East.

The Shanghai Composite Index, the main gauge of Chinese stocks, opened 0.5% lower to 3,812.61. The Shenzhen Component Index slid 0.6% to 13,497.10.

Operating conditions across China's manufacturing sector eased in July, with the headline RatingDog China General Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, coming in at 50.9.

The latest reading, which provides a gauge of factory sector conditions, compared with the 51.7 recorded in the previous month, and missed market expectations of 51.9 tracked by Investing.com.

Also bearing down on market sentiment was the continuing conflict in the Middle East. U.S. President Donald Trump said talks with Iran are scheduled for Monday, but stopped short of setting a deadline for reaching an agreement.

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