China stocks end lower on factory gate inflation worries

  • 10/14/2021
  • 00:00
  • 5
  • 0
  • 0
news-picture

SHANGHAI, Oct 14 (Reuters) - China stocks ended lower on Thursday as record-high factory gate inflation data amid weak demand in September stoked worries over the trajectory of monetary policy support. ** The Shanghai Composite index closed 0.1% lower at 3,558.28 points, while the blue-chip CSI300 index fell 0.54% to 4,913.61 points. ** The financial sector sub-index ended lower by 0.97%, the consumer staples sector fell 0.85%, the real estate index dropped 3.88% and the healthcare sub-index lost 2.27%. ** The smaller Shenzhen index ended up 0.2% and the start-up board ChiNext Composite index was higher by 0.174%. ** China’s September factory gate inflation rose to a record on soaring commodity prices, but weak demand capped consumer inflation, forcing policymakers to walk a tight rope between supporting the economy and further stoking producer prices. ** “We believe any growth-supporting policy measures will be targeted and specific, given that the inflationary pressures will be limited among producers and manufacturers,” said Xing Zhaopeng, senior China strategist at ANZ. ** “Any stimulus on the demand side will amplify supply-side constraints and impact downstream sectors, which will face rising costs,” Xing said, expecting the central bank to keep the benchmark interest rates on hold. ** So far this year, the Shanghai stock index is up 2.5% and the CSI300 has fallen 5.7%. ** About 29.50 billion shares were traded on the Shanghai exchange, roughly 58.5% of the market’s 30-day moving average of 50.46 billion shares a day. The volume in the previous trading session was 32.51 billion. (Reporting by the Shanghai Newsroom; Editing by Ramakrishnan M.) Our Standards: The Thomson Reuters Trust Principles.

مشاركة :