China Shares Fall as Data Shows Inflation Rose

Markets Reuters

Reuters

(Reuters)

China stocks fell roughly 2 percent on Thursday, led by banking and energy shares, as investors interpreted data showing consumer inflation rising faster than forecast as largely negative for an economy struggling to find momentum.

Continue Reading Below

China's blue-chip CSI300 index fell 1.9 percent, to 3,013.15, while the Shanghai Composite Index lost 2.0 percent, to 2,804.73 points, adding fresh evidence that the recent rally is running out of steam.

The data, which showed February consumer inflation accelerating at its fastest pace since July 2014, limits room for monetary easing, analysts say.

But the inflation report helped companies making consumer products stand out as winners on Thursday.

(Reporting by Samuel Shen and Nathaniel Taplin; Editing by Richard Borsuk)