Chinese Shares Fall at Open Amid Weak Economic Data, Fed Caution

MT Newswires Live10:18

Chinese shares opened lower on Wednesday as weak economic data and a cautious global outlook ahead of the Federal Reserve's upcoming policy path weighed on market sentiment.

The Shanghai Composite Index, the main gauge of Chinese stocks, declined 0.4% to 4,074.29. The Shenzhen Component Index fell 0.7% to 15,569.92.

Investors in the local equities market tracked losses on Wall Street, with the S&P 500 finishing lower on Tuesday ahead of the US Federal Reserve's upcoming policy announcement.

At home, government data released Tuesday showed that China's property sector continued to struggle, with new home prices in 70 major cities decreasing 3.5% year over year in May.

Property investments fell 16.2% year over year in the first five months of the year, faster than the 13.7% fall recorded in the four months ended April.

On the consumption side, retail sales fell 0.6% year over year to 4.109 trillion yuan in May, marking the first decline since December 2022.

Industrial output growth, however, quickened to 4.5% in May from 4.1% in April.

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