China stocks end lower on factory gate inflation worries
Thursday, October 14, 2021       14:46 WIB

SHANGHAI, Oct 14 (Reuters) - China stocks ended lower on Thursday as record-high factory gate inflation data amid weak demand in September stoked worries over the trajectory of monetary policy support.
The Shanghai Composite index closed 0.1% lower at 3,558.28 points, while the blue-chip CSI300 index fell 0.54% to 4,913.61 points.
The financial sector sub-index ended lower by 0.97%, the consumer staples sector fell 0.85%, the real estate index dropped 3.88% and the healthcare sub-index lost 2.27%.
The smaller Shenzhen index ended up 0.2% and the start-up board ChiNext Composite index was higher by 0.174%.
China's September factory gate inflation rose to a record on soaring commodity prices, but weak demand capped consumer inflation, forcing policymakers to walk a tight rope between supporting the economy and further stoking producer prices.
"We believe any growth-supporting policy measures will be targeted and specific, given that the inflationary pressures will be limited among producers and manufacturers," said Xing Zhaopeng, senior China strategist at ANZ.
"Any stimulus on the demand side will amplify supply-side constraints and impact downstream sectors, which will face rising costs," Xing said, expecting the central bank to keep the benchmark interest rates on hold.
So far this year, the Shanghai stock index is up 2.5% and the CSI300 has fallen 5.7%.
About 29.50 billion shares were traded on the Shanghai exchange, roughly 58.5% of the market's 30-day moving average of 50.46 billion shares a day. The volume in the previous trading session was 32.51 billion. (Reporting by the Shanghai Newsroom; Editing by Ramakrishnan M.)

Sumber : Reuters.com