Mainland stocks fall after disappointing data

Source:Reuters-Global Times Published: 2018/6/14 17:33:41

Chinese mainland stocks fell on Thursday, as disappointing economic data and renewed trade war fears hit investor sentiment.

The blue-chip CSI300 index fell 0.40 percent to 3,773.37 points, while the Shanghai Composite Index lost 0.18 percent, at 3,044.16 points.

Industrial output, investment and retail sales all grew less than expected in May, data showed on Thursday, offsetting upbeat trade data and suggesting further weakness ahead if the Chinese government perseveres with its crackdown on factory pollution and questionable local government spending.

Investors were also kept in check amid concerns about US threats to impose tariffs on billions of dollars in Chinese goods.

US President Donald Trump will meet with his top trade advisers on Thursday to decide on whether to activate the tariffs, a senior Trump administration official said.

Meanwhile, China's central bank left borrowing costs for interbank loans unchanged on Thursday, an unexpected decision that shrugged off the US Federal Reserve's increase in its benchmark rate overnight.

"The central bank's move is a boost to sentiment, though the impact could be rather limited," said Yang Weixiao, an analyst with Founder Securities.

Investors shall tread cautiously for the moment, as there are downside risks for the A-share market amid an economic slowdown, Yang said.

Posted in: MARKETS

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