SHANGHAI, April 12 China stocks slid on
Wednesday, as softer producer inflation data raised questions on
the sustainability of the country's economic recovery and some
shares that had rallied on plans for a new economic zone lost
The blue-chip CSI300 index fell 0.2 percent to
3,509.44, while the Shanghai Composite Index lost 0.5
percent to 3,273.83 points.
China's producer price inflation cooled for the first time
in seven months in March as iron ore and coal prices tumbled,
pressured by fears that the country's steel production is
outweighing demand and threatening a glut of the metal this
But Wu Kan, head of equity trading at investment firm
Shanshan Finance, said cooling inflation "has been largely
expected", citing recent weakness in commodity prices.
In his view, longer-term companies able to benefit from
plans for the economic zone at Xiongan should benefit as such
projects "will boost demand for building materials".
Shares linked to infrastructure work surged after the zone
was announced, and many cooled down on Wednesday.
Great Wall Motor, a Hebei-based car maker, dived
8 percent. The car maker had surged as much as 21 percent since
Guangdong-based developers and port operators surged on
Wednesday, as Prime Minister Li Keqiang said the central
government this year will formulate the development plan for
Guangdong-Hong Kong-Macau Great Bay Area.
Sector performance was mixed, with gains led by developers
Most listed lenders sagged after the banking
regulator told lenders to conduct "self-inspections" in areas
such as using loopholes to circumvent rules, in order to reduce
leverage. The move will potentially hurt banks' balance sheet.
(Reporting by Luoyan Liu and John Ruwitch; Editing by Richard