China Stocks fall on deflationary risks

9 Nov 2022 , 02:52 PM

Mainland China share market finished session lower on Wednesday, 09 November 2022, registering second day of losing streak, amid deflationary concerns after latest official data showing that the worlds second-largest economy factory gate prices fell for the first time in nearly two years and consumer inflation slowed. At close of trade, the benchmark Shanghai Composite Index fell 0.53%, or 16.33 points, to 3,048.17. The Shenzhen Composite Index, which tracks stocks on Chinas second exchange, dropped 0.41%, or 8.30 points, to 2,011.51. The blue-chip CSI300 index decreased 0.94%, or 35.06 points, to 3,714.27. GoerTek shares tumbled by the 10 per cent daily limit to 20.72 yuan in Shenzhen trading after the company, which supplies audio devices for Apple products, said a ?major overseas customer? halted orders, which will erode revenue by up to US$455 million this year, or 4.2 per cent of annual sales in 2021. Switch products maker Dongnan Electronics climbed 45% from its initial public offering price of 20.84 yuan, while electrical components distributor Xinling Electrical rose 30% against its 25.88 yuan offer price. ECONOMIC NEWS: The producer price index (PPI), which reflects the prices that factories charge wholesalers for products, fell by 1.3% year on year in October, down from 0.9% growth in September, the National Bureau of Statistics (NBS) said on Wednesday. China consumer price index (CPI), meanwhile, rose by 2.1% in October from a year earlier, down from 2.8% growth in September, remaining below the annual target of ?around 3%?. Chinas core consumer inflation rate, excluding the volatile prices of food and energy, rose by 0.6% in October compared with a year earlier, unchanged from September. CURRENCY NEWS: Chinas yuan eased against the dollar on Monday, inline with softer midpoint fixing by Chinas central bank. Prior to market opening on Wednesday, the Peoples Bank of China (PBOC) set the midpoint rate CNY=PBOC at 7.2189 per dollar, weaker than the previous day fix of 7.215. In the spot market, the yuan was changing hands at 7.2464 per US dollar at midday, 144 pips away from the previous late session close and 0.38% away from the midpoint. Powered by Capital Market – Live News