Chinese stocks fell as a slew of economic data underlined the country’s bumpy recovery and the People’s Bank of China (PBOC) left a key policy rate unchanged, disappointing some who had expected a rate cut following surprisingly soft bank lending data.

The benchmark Shanghai Composite index dropped 0.55 percent to 3,015.89 while Hong Kong’s Hang Seng index finished marginally lower at 17,936.12 after a choppy session.

China’s May retail sales topped forecasts, but industrial output, home sales and fixed-asset investment all underwhelmed, suggesting Beijing would need to do more to prop up feeble domestic demand.

Industrial production in China was up 5.6 percent on year in May, the National Bureau of Statistics said on Monday – well shy of forecasts for an increase of 6.2 percent and slowing sharply from 6.7 percent in April.

The bureau also said that retail sales rose an annual 3.7 percent – beating expectations for an increase of 3.0 percent and accelerating from 2.3 percent in the previous month.

Fixed asset investment was up 4.0 percent on year, missing forecasts for 4.2 percent – which would have been unchanged. The jobless rate came in at 5.0 percent, unchanged and in line with expectations.

China’s state media reported that the country is facing internal and external constraints to lower rates.

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First Published: Jun 17 2024 | 5:24 PM IST