At close of trade, the benchmark Shanghai Composite Index was down 1.4%, or 46.02 points, to 3,230.08. The Shenzhen Composite Index, which tracks stocks on China's second exchange, fell 1.24%, or 26.16 points, to 2,087.17. The blue-chip CSI300 index dropped 1.31%, or 52.71 points, to 3,967.14.
The inflation data indicated that a Chinese economic rebound is likely to take longer than expected this year, which bodes poorly for markets exposed to the Asian giant. Data on Wednesday also showed that Chinese import demand remained weak.
Focus is now squarely on the PBOC's medium-term policy loan operation next week for more clues on China's monetary policy stance. The PBOC is expected to inject of 400 billion yuan ($57.42 billion) via the medium-term lending facility (MLF) next week at 2.75% so that overall liquidity will remain balanced. A batch of 200 billion yuan worth of MLF loans is due to expire next Wednesday.
CURRENCY NEWS: China's yuan weakened against the dollar on Thursday, as weaker mid-point fixing by China's central bank. Prior to market opening, the People's Bank of China set the midpoint rate CNY=PBOC at at 6.9655 per dollar, 11 pips firmer than the previous fix of 6.9666. In the spot market, the yuan CNY=CFXS opened at 6.9650 per dollar and was changing hands at 6.9677 at midday, 47 pips softer the previous late session close.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
