The Shanghai Composite rose 0.4% to around 3,510, while the Shenzhen Component gained 0.5% to 10,640 on Wednesday, with Chinese stocks climbing to multi-month highs following the release of key inflation data.
Consumer prices in China edged up 0.1% year-over-year in June, marking the first positive reading in five months and signaling tentative signs of stabilizing demand. However, producer prices plunged 3.6% — the steepest drop since July 2023 — as intensified price competition continued to weigh on the industrial sector amid weak domestic consumption. Geopolitical risks also lingered as Beijing warned Washington against reinstating tariffs on Chinese goods next month and threatened to retaliate against countries that align with US efforts to exclude China from global supply chains. Among notable gainers were Foxconn Industrial (up 1.2%), Contemporary Amperex (3.3%), and Zhongji Innolight (1.6%).
