China's stocks close mixed amid European, U.S. debt troubles

Chinese stocks closed mixed on Monday as European sovereign debt woes and slow progress on the U.S. debt-reduction deal weighed on investors' sentiments. The benchmark Shanghai Composite Index lost 1.43 points, or 0.06 percent, to close at 2,415.13. The Shenzhen Component Index edged up 8.63 points, or 0.09 percent, to finish at 10,033.79. Combined turnover shrank to 101.4 billion yuan (16 billion U.S. dollars) from 142.37 billion yuan on the previous trading day. Gainers outnumbered losers by 536 to 351 in Shanghai, and 693 to 623 in Shenzhen. The market weakness followed a three-day losing streak last week, as investors were concerned over the financial contagion in the eurozone and feared a U.S. congressional committee could not reach a deal to cut the country's mounting debt. The world economy is likely to slump into a long-term recession given current global economic challenges, Chinese Vice Premier Wang Qishan said at a meeting in central China's city of Wuhan on Saturday. Sub-indices for medical equipment producers and green companies saw the biggest losses, slumping 3.27 percent and 3.24 percent, respectively. Despite a capital injection of 1.8 billion yuan from its parent company Shougang Group, steelmaker Beijing Shougang slumped by the daily limit of nearly 10 percent to 3.89 yuan. The chemical fiber industry led growth, with its index up 2.03 percent. Jilin Chemical Fiber Group saw its shares surge 10 percent to 5.48 yuan.