SHANGHAI: China stocks slipped on Tuesday in thin trade amid subdued sentiment, due to sluggish economic recovery and limited stimulus support, even as regional markets rebounded following a panic sell-off.

Asian stocks rose, led by Japanese shares on a steady yen, ahead of US economic data to gauge the Federal Reserve’s policy outlook.

Investors awaited US producer and consumer prices numbers due on Tuesday and Wednesday, respectively, as well as a global central bankers’ meeting in Jackson Hole, Wyoming.

China stocks track Asian markets higher

China will also release a flurry of indicators this week, including credit and economic activity data, which is likely to show that the economy got off to a weak start in the second half of the year.

“China has been a tough trade for funds with global mandates and has underperformed drastically over the past few years,” said Augustine Fan, head of insights at fintech firm SOFA.org.

“The markets need a strong catalyst to reverse the bearish trend, but they have yet to see a compelling one even out of the recent plenum.”

China reported weaker-than-expected second-quarter economic growth last week, and recent economic indicators also didn’t show big improvement.

“It’ll be hard for allocators to deploy significantly into China at this stage until the facts on the ground can see a material change,” Fan said.

• At the midday break, the Shanghai Composite index fell 0.07% to 2,856.09.

• China’s blue-chip CSI300 index was down 0.21%, with its financial sector sub-index up 0.25%, the consumer staples sector down 1.26%, the real estate index down 0.89% and the healthcare sub-index down 1.43%.

• Chinese H-shares listed in Hong Kong rose 0.09% to 6,035.29, while the Hang Seng Index fell 0.1% to 17,128.78.

• The smaller Shenzhen index slipped 0.15%, the start-up board ChiNext Composite index fell 0.07% and Shanghai’s tech-focused STAR50 index was down 0.29%.