Chinese stocks sharply dropped in Monday’s trading session after the country’s economic activity cooled in April due to Covid-19 lockdowns.
The Shanghai Composite index edged down 0.64% or 19.88 points to the 3,064.40 level.
At the bottom of the benchmark, pharmaceutical firm CR Double-Crane slumped 10.01% or 0.48 points to $4.33 per share. Consequently, Datang HuaYin Electric Power plummeted 7.21% or 0.05 points to $4.77 per share.
Then, the Shenzhen Component index also lowered by 0.48% or 54.07 points to the 11,105.72 level.
Its worst performer, DEA General Aviation, plunged 10.00% or 0.02 points to $0.20 per share. In addition, Dong Yi Ri Sheng Home Decoration slashed 9.94% or 0.13 points to $1.13 per share.
Chinese stocks plunged after Beijing reported a drop in retail sales and industrial production, missing analysts’ expectations.
Retail sales decreased by 11.10% year-over-year in April, surpassing the forecasted 6.10%. Eventually, industrial production slumped by 2.90% in the same month. The figure contrasted the projections for a slight increase of 0.40%.
At the same time, manufacturing shed by 4.60%, mainly dragged down by a downturn in the auto sector and equipment manufacturing.
In addition to the impact of Covid, industrial production faces pressure from insufficient market demand and rising costs. These conflicts further dampened the investors’ sentiment toward Chinese stocks.
Asian shares mixed as Chinese stocks dwindled
Conversely to the mainland Chinese stocks, Hong Kong’s Hang Seng index rose 0.28% or 55.62 points to the 19,954.39 mark.
However, tech stocks sank following the downbeat economic data. For instance, shares of the food delivery giant Meituan inched down 1.73% or 0.37 points to $20.98 per share. Likewise, gaming titan Tencent 0.28% or 0.13 points to $5.73 per share.
Meanwhile, Alibaba gained 3.53% or 0.37 points to $10.84 per share. The Chinese e-commerce firm benefitted from the positive cues from the global markets.
Furthermore, Japan’s Nikkei 225 benchmark added 0.53% or 141.17 points to the 26,568.82 level.
