SHANGHAI: China stocks closed lower on Wednesday as weak factory and retail activity data weighed on sentiment, while the fresh COVID-19 outbreaks also raised concerns over China’s economic recovery.
The blue-chip CSI300 index fell 1.0% to 4,867.32, while the Shanghai Composite Index lost 0.2% to 3,656.22.
China’s factory and retail sectors faltered in August, with output and sales growth hitting one-year lows as fresh coronavirus outbreaks and supply disruptions threatened the country’s economic recovery.
“We expect Beijing to use more general easing measures to offset its tightening stance on the property sector and carbon emissions,” Nomura analysts said in a note.
The consumer staples sub-index and the tourism sub-index shed around 2%, as China fights the latest coronavirus outbreak in the southeast Fujian province, and some cities have issued travel warnings ahead of major holidays.
The real estate sector and banks finished down 2.5% and 0.9%, respectively, as issues related to China Evergrande Group prompted worries of broader risks to the country’s real estate market and financial system.