China Stocks End Mixed As Inflation Rises to 21-Month High; Sugon Plunges 10% After Terminated Merger

MT Newswires Live12-10

Chinese stocks closed mixed on Wednesday as inflation increased to a 21-month high and investors await the outcome of Beijing's Central Economic Work Conference.

The Shanghai Composite Index, the main gauge of Chinese stocks, lost 0.2% or 9.03 points to reach 3,900.50. The Shenzhen Component Index rose 0.3% or by 39.06 points to 13,316.42.

China's consumer price index jumped 0.7% year over year in November, up from 0.2% in the previous month as well as in the year-ago period.

Producer prices stayed in deflationary territory, falling 2.2% year over year, and wider than a 2.1% fall in October.

After the Politburo emphasized the need to improve domestic demand, investors are looking to gauge the impact of the Central Economic Work Conference that will list the growth targets and policy plans for 2026, TradingView reported Wednesday.

Meanwhile, European firms are increasing their efforts to diversify their supply chains away from China as Beijing's export controls have caused global trade uncertainty, the European Chamber of Commerce said in a report Wednesday.

In corporate news, shares in Dawning Information Technology or Sugon (SHA:603019) plunged 10% during the closing bell after the termination of its merger with Hygon Information Technology (SHA:688041).

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