BEIJING: China stocks ended lower on Wednesday as deepening
deflation in the country's producer prices underlined the economic impact of the COVID-19 pandemic on overseas demand, raising doubts about a swift economic recovery.
At the close, the Shanghai Composite index was down 0.42 per cent at 2,943.75.
The blue-chip
CSI300 index was down 0.18 per cent, with its financial sector sub-index lower by 0.92 per cent, the consumer staples sector down 0.21 per cent, the real estate index down 1.27 per cent and the healthcare sub-index up 1.77 per cent.
The smaller Shenzhen index ended up 0.3 per cent and the start-up board ChiNext Composite index was higher by 0.94 per cent.
China's producer prices fell by the sharpest rate in more than four years, underscoring pressure on the manufacturing sector as the COVID-19 pandemic reduces trade flows and global demand.
It will take some time for foreign demand to recover even though some countries have reopened their economies, Chinese commerce ministry official Zhang Li told reporters on Wednesday.
Shares in Chinese battery maker EVE Energy Co Ltd climbed as much as 9.8 per cent to 42.66 yuan, their highest since Feb 25, 2019, as a brokerage rated the stock at "buy".
Around the region,
MSCI's Asia ex-Japan stock index was firmer by 0.41 per cent, while Japan's Nikkei index closed up 0.15 per cent.
At 0708 GMT, the yuan was quoted at 7.07 per U.S. dollar, 0.09 per cent firmer than the previous close of 7.0765.