Chinese markets gain despite inflation concerns

Chinese equities ended slightly higher on Wednesday, despite concerns over rising inflation and slowing economic growth. The Shanghai Composite gained 0.28% to close at 3,951.5, while the Shenzhen Component rose 0.15% to 13,723.3.

Consumer inflation increased to 0.8% in August from 0.5% in July, in line with expectations. Producer price inflation also rose to 3.8% from 3.5%, slightly above market expectations. Higher energy costs, partly linked to ongoing tensions in the Middle East, were a key factor behind the rise in inflation.

However, weak consumer demand remains a concern as the Chinese economy slows. Companies continue to face difficulty passing higher costs on to consumers, while expectations of more limited fiscal support are adding to the pressure.

 

Powered by Capital Market - Live News