Chinese markets fall as rising costs weigh on investor sentiment

Chinese stocks ended lower on Wednesday, with the Shanghai Composite falling 0.88% to 3,767.2, its lowest level in nearly three months. The Shenzhen Component dropped 1.97% to 12,110.6, hitting its lowest level in more than a year. Investor sentiment weakened as rising production costs raised concerns about corporate profits, despite strong export demand.

China?s producer price inflation rose to 5.0% from 3.8%, marking its strongest increase since June 2022. Renewed tensions in the Middle East and risks to global oil supplies pushed up input costs, putting pressure on company margins. Consumer inflation also edged higher to 0.9% in September from 0.8% in August, reaching its highest level since June.

On the trade front, China?s trade surplus widened to $133.53 billion in September from $88.72 billion a year earlier, marking its largest level since January 2025. Exports jumped 36.3% year-on-year to a record $447.18 billion, while imports rose 31.0% to a record $313.66 billion, highlighting strong trade activity.

Among the major laggards, Foxconn Industrial Internet fell 6.67%, Zhongji Innolight declined 5.73%, CATL lost 3.11%, and China Life Insurance dropped 2.85%. Overall, concerns over rising costs and pressure on corporate earnings weighed on Chinese markets, offsetting the positive signals from strong trade data.

Powered by Capital Market - Live News