FX.co ★ China Stocks Edge Lower on Mixed Inflation Data

On Wednesday, the Shanghai Composite saw a slight decline of 0.13%, closing at 3,493, while the Shenzhen Component edged down by 0.06% to settle at 10,582. This shift reversed earlier gains as market participants processed a mix of inflation data and heightened geopolitical tensions. In China, consumer prices experienced a modest increase of 0.1% year-over-year in June, marking the first positive figure in five months and suggesting a tentative stabilization of demand. However, the industrial sector faced challenges, with producer prices plunging 3.6%—marking the steepest drop since July 2023—due to increasing price competition and tepid domestic consumption. Investor sentiment was further dampened by Beijing's warning to Washington against the potential reinstatement of tariffs on Chinese goods next month, along with threats of retaliation against countries participating in US-led initiatives to exclude China from global supply networks. Among the notable stocks experiencing declines were East Money, which fell 1%, Zijin Mining with a 4.6% drop, Victory Giant down by 2.9%, Tianfeng Securities sliding by 2%, and Beijing Compass decreasing by 2.8%.