Financial shares pull index lower

Source: Xinhua | 2017-08-10

SHANGHAI stocks dipped yesterday following declines by financial-related companies and also on factory-gate inflation data that may prompt regulators to maintain controls.

The Shanghai Composite Index fell 0.19 percent to close at 3,275.57 points.

Banks and brokerages were among the decliners, with Ping An Bank Co easing 2.29 percent to 5.55 yuan, and CITIC Securities Co off 1.15 percent to 17.14 yuan.

Data released yesterday showed that July's Consumer Price Index rose 1.4 percent and the Producer Price Index gained 5.5 percent for the third straight month. Market sentiment dimmed after investors worried the rise in PPI may press regulators to keep controls imposed earlier this year to contain risks from a rapid build-up in debt.

“The inflation numbers were a bit better than expectations, and show there is basically no inflation pressure. It’s likely the central bank will remain with monetary policy that’s neither tight nor loose,” said Zhang Gang, analyst at China Central Securities.