China stocks fell 0.9 percent on Monday, led by property firms, after data showed the inflation rate rose more than expected last month, prompting speculation that Beijing may delay further easing of monetary policy. "There are mixed views on the data. My view is that any reserve requirement ratio cuts would not come in April as a result of the data," said Chen Yi, analyst at Xiangcai Securities in Shanghai, referring to the reserve requirement ratio for banks, a key policy tool used by the central bank.
Sentiment was also soured after global markets fell on much-weaker-than-expected US job data on Friday, traders said. The Shanghai Composite Index ended at 2,285.8, breaking through the 2,300 level, after rising 0.2 percent on Friday.
Property developers underperformed, with the sub-index dropping 1.4 percent. Shares in China Vanke, the country's largest real estate developer by sales, fell 1.9 percent while Tieling Newcity Investment Holding slumped 8.7 percent. China's annual inflation rate rose in March to a higher than expected 3.6 percent from February's 3.2 percent, driven by rising food prices, data showed.
A Reuters poll had predicted inflation edged up in March to 3.3 percent. Economists, however, believe price pressures will moderate over the course of the year, giving Beijing the flexibility to ease policy if growth cools more than expected.
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