At the close, the Shanghai Composite index was down 0.26% at 3,332.18. The blue-chip CSI300 index fell 0.17%.
Industrial firms weighed on the broader index, falling 0.92% after factory gate prices fell at a faster-than-expected pace in September and consumer inflation slowed to its weakest in 19 months, indicating continued challenges facing the Chinese economy.
Adding to concerns over Sino-U.S. tensions, Reuters reported that the Trump administration is considering adding China’s Ant Group to a trade blacklist before its high-profile dual listing in Shanghai and Hong Kong.
Financial shares. which had helped to prop up gains earlier in the session following a rise in bank loans, trimmed their advances to end up 0.52%.
The smaller Shenzhen index ended down 0.71% and the start-up board ChiNext Composite index was weaker by 0.951%.
Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.2%, while Japan’s Nikkei index closed down 0.51%, with sentiment hurt by a surge in global COVID-19 cases, elusive U.S. stimulus and Sino-U.S. tensions.
At 0711 GMT, the yuan was quoted at 6.725 per U.S. dollar, 0.17% weaker than the previous close of 6.7136.
So far this year, the Shanghai stock index is up 9.2% and the CSI300 has risen 17.1%, while China’s H-share index listed in Hong Kong is down 12.4%. Shanghai stocks have risen 3.55% this month.