China stocks slip on mild inflation data, trade worries

China stocks slipped on Wednesday after data showed consumer prices remained soft, while the dollar held firm ahead of a key U.S. inflation report and Federal Reserve policy decision that would set the near-term course for interest rates.

The consumer price index (CPI) rose 0.3% in May from a year earlier, matching a gain in April, data from the National Bureau of Statistics (NBS) showed on Wednesday, below a 0.4% increase forecast in a Reuters poll.

"A more comprehensive and proactive policy stance covering fiscal, monetary, and property sector may be necessary to boost domestic demand more effectively," said Zhiwei Zhang, chief economist at Pinpoint Asset Management.

Also denting sentiment, Bloomberg News reported on Tuesday, citing people familiar with the matter, that the Biden administration is considering further restrictions on China's access to chip technology used for artificial intelligence.

** At the midday break, the Shanghai Composite index was down 0.02% at 3,027.41 points.

** China's blue-chip CSI300 index was down 0.17%, with its financial sector sub-index lower by 0.75%, the consumer staples sector up 0.29%, the real estate index down 1.24% and the healthcare sub-index up 0.12%.

** Chinese H-shares listed in Hong Kong fell 1.54% to 6,352.51, while the Hang Seng Index was down 1.45% at 17,913.10.

** The smaller Shenzhen index was up 0.52%, the start-up board ChiNext Composite index was weaker by 0.19% and Shanghai's tech-focused STAR50 index was down 0.17%.

** Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.17% while Japan's Nikkei index was down 0.67%.