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Felicia Tan
June 10 21:26

Chinese stocks declined amid falling producer prices

Chinese stocks closed negative on Wednesday as declining producer prices reflected the impact of the COVID-19 pandemic on foreign demand, raising doubts about an early economic recovery.
Shanghai Composite index dropped by 0.42% to 2,943.75 points, while the CSI300 blue chip index dropped by 0.18% to 4,039.71 points.
Producer prices in China dropped to a maximum of 4 years in May, indicating pressure on the manufacturing sector due to the COVID-19 pandemic, which reduced trade flows and weakened global demand.
Financial sector sub-index fell 0.92 percent, the consumer goods sector dropped 0.21 percent, the real estate index declined 1.27 percent, and the health sector grew 1.77 percent.
The index of ChiNext Composite startups increased by 0.94%.
The decline was led by Shanghai Fengyuzhu Exhibition Co Ltd, Chengdu Xuguang Electronics Co Ltd and Tibet Rhodiola Pharmaceutical Holding Co., which lost 9.59%, 7.38% and 6.93% respectively.
The Hong Kong index dropped 0.03% to 25,049.73 points, while the Hang Seng China Enterprises index added 0.22% to 10,143.48 points.