SHANGHAI: Chinese shares rose on Wednesday as slower-than-expected December producer inflation made room for more monetary easing in the world’s second-largest economy, with new energy vehicle makers advancing on data showing strong sales momentum.
At the close, the Shanghai Composite index was up 0.84% at 3,597.43. The blue-chip CSI300 index rose 1%, with the consumer staples sector up 1.06%, resources firms up 2.63% and industrial firms up 2.28%. China’s producer prices rose slower than expected in December after government measures to contain high raw material prices, while consumer prices slowed as food prices fell.
Analysts expect moderating factory-gate inflation to offer more room for loosening monetary policy, as authorities seek to stabilise growth. A sub-index tracking makers of new energy vehicles (NEVs) and their suppliers ended the day up 4.74%.
New data on Monday showed NEV sales jumped 114% in December from a year earlier, continuing strong growth momentum despite falling auto sales overall. The real estate index was down 1.12% amid continued concerns over the ability of developers to service their debts. Property firms controlled by developers Shimao Group Holdings, Kaisa Group Holdings and Greenland Group have been named and shamed in a list of Chinese companies “consistently overdue” on commercial paper payments.
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