However, market gains capped after reports that the Biden administration is considering further restrictions on China's access to chip technology used for artificial intelligence.
At close of trade, the benchmark Shanghai Composite index was up 0.31%, or 9.42 points, to 3,037.47. The Shenzhen Composite which tracks stocks on China's second exchange, added 0.58%, or 9.76 points, to 1,693.91. The blue-chip CSI300 index was up by 0.04%, or 1.24 points, to 3,544.12.
ECONOMIC NEWS: China's Producer Prices Decline 1.4% in May 2024- China's producer prices dropped 1.4% year-on-year in May 2024, following a 2.5% decrease in April. This marked the 20th consecutive month of contraction but was the softest decline since February 2023. Government support measures helped ease the fall, with production costs down 1.6% compared to 3.1% in April. Mining costs decreased by 1.2% compared to 4.8% and processing by 2.6% compared to 3.6%. Raw materials prices rebounded by 0.5% compared to a decline of 1.9%. Consumer goods prices fell 0.8% compared to 0.9%.
China Inflation Rises 0.3% On Year In May- Consumer prices in China were up 0.3% on year in May, the National Bureau of Statistics said on Wednesday. On a monthly basis, inflation fell 0.1% versus forecasts for a flat reading after rising 0.1% in April. The bureau also said that producer prices slumped an annual 1.4% - exceeding forecasts for -1.5% following the 2.5% decline a month earlier.
CURRENCY NEWS: China's yuan was little changed against the dollar on Wednesday. Prior to the market's opening, the People's Bank of China set the midpoint rate at 7.1133 per U.S. dollar, slightly firmer than the previous fix of 7.1135.. In the spot market, the onshore yuan opened at 7.2520 per dollar and was changing hands at 7.2536 at midday, little changed from the previous late session close.
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