China stocks slip amid investor caution ahead of US inflation data

China stocks fall: China's stock market saw a slight downturn on Tuesday as investors exercised caution ahead of pivotal events, including the release of a crucial US inflation report and a series of significant domestic economic data scheduled later in the week.

The focus this week remains on the eagerly anticipated US inflation data slated for Wednesday. Concurrently, China is set to unveil its March inflation figures, trade statistics, and credit lending data. Additionally, investors are keenly awaiting China's first-quarter gross domestic product (GDP) data and accompanying activity indicators next week.

Analysts at HSBC conveyed their outlook on China's economic trajectory, projecting a robust performance for 2024. They forecasted a growth rate of around 4.9 per cent, marginally slower than the previous year but deemed as commendable considering the absence of favorable base effects. Despite expectations for a stabilisation in the property sector, it is anticipated to remain a drag on the economy for the foreseeable future. However, pockets of growth, particularly in manufacturing investment, offer promising prospects.

Premier Li Qiang stressed the country's commitment to maintaining consistent macro policies and ensuring precise policy implementation during a symposium held on Monday with economic experts and business leaders, as reported by state media.

During the midday break, the benchmark Shanghai Composite index experienced a minor decline of 0.15 per cent to reach 3,042.37 points. Similarly, the blue-chip CSI300 index dipped by 0.25 per cent to 3,527.4 points, with notable sectors such as finance, consumer staples, and real estate exhibiting slight downturns, while the healthcare sector demonstrated marginal gains.

Chinese H-shares listed in Hong Kong witnessed a modest rise of 0.41 per cent to reach 5,892.76, paralleled by a 0.55 per cent increase in the Hang Seng Index to 16,824.36.

Elsewhere, the Shenzhen index and the ChiNext Composite index showed modest gains of 0.29 per cent, while Shanghai's tech-focused STAR50 index rose by 0.25 per cent.

In regional markets, MSCI's Asia ex-Japan stock index strengthened by 0.59 per cent, while Japan's Nikkei index advanced by 0.67 per cent.

The yuan CNY=CFXS was quoted marginally weaker at 7.2343 per US dollar, reflecting a 0.05 per cent decline from the previous close of 7.2305.

Among the top performers in the Shanghai Composite index were Jenkem Technology Co Ltd, Guangdong Lyric Robot Automation Co Ltd, and Guangdong Jiayuan Technology Co Ltd. Conversely, Zhengping Road & Bridge Construction Co Ltd, Zhejiang Huasheng Technology Co Ltd, and Shanghai Lianming Machinery Co Ltd were among the notable decliners.

(With Reuters inputs.)