The Shanghai Composite inched up 0.09% to 4,132 on Wednesday, while the Shenzhen Component slipped 0.35% to 14,161, as mainland Chinese equities delivered a mixed performance amid persistent deflationary pressures. Data showed that consumer prices rose less than expected in January, while producer prices fell for a 40th consecutive month, highlighting entrenched price weakness across the economy.
Investors are now turning their attention to a key parliamentary meeting in March, where authorities are expected to set this year’s economic targets and may unveil additional stimulus measures. The People’s Bank of China has also pledged further financial support to shore up domestic demand, as excess industrial capacity and subdued consumption continue to dampen business confidence and growth prospects.
In corporate news, media stocks extended their gains on optimism surrounding ByteDance’s new AI-powered video-generation model. Beijing Enlight Media climbed 5.1%, while Beijing Jetsen Technology advanced 4.7%.
