The Mainland China share market finished session lower on Thursday, 13 May 2021, amid bearish sentiment stemming from rising U. S. inflation and concern to bring forward monetary stimulus tapering. Meanwhile, weaker than expected new loan data for April and Sino-U. S. tensions also weighed down sentiments.
At closing bell, the benchmark Shanghai Composite Index declined 0.96%, or 33.22 points, to 3,429.54. The Shenzhen Composite Index, which tracks stocks on China's second exchange, dropped 0.81%, or 18.51 points, to 2,253.30. The blue-chip CSI300 index fell 1.02%, or 51.58 points, to 4,992.97.
Market met with selling from the outset on tracking an overnight slump on Wall Street, dragged down by concerns that the Fed may start reducing its massive bond purchases, which have boosted stock markets so far. The U.
S. consumer price index released overnight unexpectedly rose 0.8% in April after rising by 0.6% in March, and by 4.2% year-on-year, the fastest pace since 2008.
Tensions between Beijing and Washington added to the pressure. The Chinese government has turned its western Xinjiang province into essentially an "open-air prison", a U. S. State Department official said on Wednesday as the department published a report that criticized China's treatment of religious minorities.
China's new bank loans fell more than expected in April while money supply growth slowed to a 21-month low, as the central bank gradually scales back pandemic-driven stimulus to reduce debt and financial risks in hot areas of the economy. Chinese banks extended 1.47 trillion yuan in new yuan loans in April, down from 2.73 trillion yuan the previous month and against 1.7 trillion yuan a year earlier, according to data released by the People's Bank of China (PBOC) on Wednesday. Broad M2 money supply grew 8.1% from a year earlier, central bank data showed on Wednesday. It rose 9.4% in March. Outstanding yuan loans grew 12.3% from a year earlier compared with 12.6% growth in March.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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