HONG KONG: Chinese stocks extended declines on Wednesday after a disappointing April trade data, and as traders cautiously awaited the latest US inflation report.

China’s blue-chip CSI 300 Index dropped 0.77%, while the Shanghai Composite Index fell 1.15%.

Hong Kong’s Hang Seng Index lost 0.53%, and the Hang Seng China Enterprises Index declined 0.77%.

China’s imports contracted sharply in April, while exports rose at a slower pace, pointing at a still-sluggish recovery in domestic goods demand and sliding external demand, exacerbating fears surrounding the durability of economic revival, analysts say.

A-shares retreated from recent 10-month highs.

“Investors are taking a wait-and-see approach as import figures are weak and the global economic outlook faces high uncertainties,” said Linus Yip, chief strategist at First Shanghai Securities. Yip expects Hong Kong shares to remain a range-bound trade in the second quarter.

Asian stocks were struggling to advance ahead of US consumer price data that could damage hopes for interest rate cuts later this year if inflation fails to show much of a decline. The data is due at 1230 GMT.

Meanwhile, a sweeping crackdown on due diligence firms in China is roiling the sector and upset investors.

Reuters reported CICC Capital, a unit of leading Chinese investment bank China International Capital Corp, stopped using consultancy Capvision, following an investigation into the latter on national security.