Chinese stocks closed lower on Friday, with the benchmark Shanghai Composite Index down 0.49 percent to 3,019.47 points.
The Shenzhen Component Index closed 0.78 percent lower at 9,228.23 points. Although the Shenzhen CI gained yesterday, the Shanghai index did fall.
China released its latest consumer price index and producer price index data yesterday, with CPI inflation falling to +0.1% in March from +0.7% in February after the distortionary effects of the “moving Lunar New Year” faded.
Maybank Research Pte Ltd Regional note on China Economics released today (Apr 12) said this is in line with their expectations of inflation normalising to around zero in March. Inflation had swung sharply in Jan-Feb 2024, due to the LNY occurring in Jan 2023, but moving to Feb this year. Core inflation also normalised to +0.6% in March (Feb: +1.2%), on par with the 4Q 23 average
