SHANGHAI: China stocks edged lower on Tuesday as investors were cautious ahead of a key U.S. inflation report and a string of domestic economic data due later this week.
The focus this week is on U.S. inflation data due on Wednesday. China is also scheduled to release March inflation, trade and credit lending data this week.
China is also due to report its first-quarter gross domestic product (GDP) data and activity indicators next week.
“We think China’s economy will find a firmer footing in 2024,” analysts at HSBC said in a note. “The economy should expand at around 4.9%, a touch slower than in 2023, but an arguably better performance, given that base effects will no longer flatter the numbers. Although we expect the property sector to stabilise, it will remain a drag for some time yet. There are also pockets of growth, driven by support for areas, such as manufacturing investment.”
China’s Premier Li Qiang said during a Monday symposium with economic experts and businessmen that the country will make macro policies more consistent and pay attention to precise policy implementation, state media reported.
China stocks fall on US rate concerns
At the midday break, the Shanghai Composite index was down 0.15% at 3,042.37 points.
China’s blue-chip CSI300 index was down 0.25% at 3,527.4 points, with its financial sector sub-index lower by 0.03%, the consumer staples sector down 0.34%, the real estate index down 0.5% and the healthcare sub-index up 0.08%.
Chinese H-shares listed in Hong Kong rose 0.41% to 5,892.76, while the Hang Seng Index was up 0.55% at 16,824.36.
The smaller Shenzhen index was up 0.29%, the start-up board ChiNext Composite index was higher by 0.29% and Shanghai’s tech-focused STAR50 index was up 0.25%.
Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.59%, while Japan’s Nikkei index was up 0.67%.
The yuan was quoted at 7.2343 per U.S. dollar, 0.05% weaker than the previous close of 7.2305.
The largest percentage gainers in the main Shanghai Composite index were Jenkem Technology Co Ltd, up 14.77%, followed by Guangdong Lyric Robot Automation Co Ltd, gaining 13.8%, and Guangdong Jiayuan Technology Co Ltd , up 12.75%.
The largest percentage losers in the Shanghai index were Zhengping Road & Bridge Construction Co Ltd, down 10.029%, followed by Zhejiang Huasheng Technology Co Ltd, losing 10%, and Shanghai Lianming Machinery Co Ltd, down by 9.983%.
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