SHANGHAI Feb 14 China's main stock indexes were
largely unchanged on Tuesday, after data showed the country's
inflation picked up to multi-year highs and reinforced a shift
by Beijing to a more tighter policy stance.
The blue-chip CSI300 index was unchanged at
3,435.80 points, while the Shanghai Composite Index was
also flat at 3,217.93 points.
China's consumer inflation rate in January grew the most
since May 2014 compared with the previous year, and its producer
price index rose the fastest since August 2011, both beating
market expectations and adding to signs of economic recovery.
Still, Capital Economics analysts cautioned in a research
note that both indexes would peak soon and "hopes for a
sustained reflation in China will be disappointed."
While higher inflationary impulse would reinforce a recent
shift by authorities a to tighter policy stance, which is
unfavourable for equities, any signs that demand-led inflation
might peak also presents hurdles to riskier assets because of
the negative implications for wider growth.
Major insurance stocks slid, with China Life
shedding 1 percent, as insurance sector's premium income growth
is expected to slow in 2017 on tighter regulations.
Most sectors edged lower, while gains were led by material
An index tracking major non-ferrous metals producers
rose 1 percent to close at a 2-month high. The index
was up for the 7th straight session.
Shares of Leshi Internet rose 3.7 percent, as
Jia Yueting, founder and controlling shareholder of the company
proposed awarding 20 new shares for every 10 shares held by all
(Reporting by Luoyan Liu and John Ruwitch; Editing by Shri