China Stocks fall on profit booking, softer PPI data

The Mainland China equity market closed lower on Wednesday, 12 April 2017, as investors elected to book recent gains after softer producer inflation data raised questions on the sustainability of the country's economic recovery and some shares that had rallied on plans for a new economic zone lost steam. The Shanghai Composite Index dropped 0.5% to 3,273.8 while the CSI 300, which tracks large companies listed in Shanghai and Shenzhen, was down 0.2 cent to 3,509.4. The Shenzhen Component index lost 0.6% to 10,587.3 while the Nasdaq-style ChiNext was down 1.1% to 1,897.5.

China's producer price inflation (PPI) cooled for the first time in seven months in March as iron ore and coal prices tumbled, pressured by fears that the country's steel production is outweighing demand and threatening a glut of the metal this year. The Producer Price Index, which measures costs for goods at the factory gate, rose 7.6%, 0.2 percentage points slower than February's 7.8%, which was a eight-year record. Meanwhile, consumer inflation warmed up slightly in March. The Consumer Price Index, a main gauge of inflation, rose 0.9% year on year in March, 0.1 percentage points higher than February, the National Bureau of Statistics said today.

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