The Shanghai Composite dropped 1.39% to close at 3,422, while the Shenzhen Component declined 0.65% to 11,314 on Tuesday, erasing earlier gains as weak economic data and a disappointing stimulus package weighed on investor sentiment.
China stocks struggle amid economic weakness
After the market closed on Monday, data revealed that Chinese banks extended only 500 billion yuan in new loans for October, a sharp decline from September and well below the expected 700 billion yuan. Additional data released over the weekend showed that China’s consumer inflation for October came in below forecasts, while producer deflation deepened.
EMI and Dawning among worst performers
On Friday, China announced a 10 trillion yuan debt package aimed at easing local government financing, but the measures fell short of delivering the direct economic stimulus that investors had anticipated. Major losses were seen in heavyweight stocks, including East Money Information (-1.2%), Dawning Information (-4%), and Citic Securities (-2.7%).
