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Staff of Reuters 2 Min Read* The daily quota for HK->Shanghai Connect was used at 0.7 percent, and the daily quota for Shanghai->HK was used at 1.2 percent. The FTSE China A50 is down 1.2%. (Reuters) – SHANGHAI, July 9 – China’s stocks dipped on Friday, putting the country on track for a weekly loss, as statistics showed the country’s annual factory gate inflation remained uncomfortably high, highlighting the economy’s rising stresses. * At the close of the morning session, the CSI300 index slid 1.1 percent to 5,034.76 points, while the Shanghai Composite Index fell 0.7 percent to 3,501.16 points. * The ChiNext start-up board in Shenzhen fell 1.2 percent, while Shanghai’s tech-focused STAR50 index fell 2.5 percent. * CSI300 fell 0.9 percent this week, while SSEC fell 0.5 percent. * In June, factory gate inflation in China decreased somewhat, but the annual rate remained high. The persistently rising inflationary pressures in the industrial sector prompted China’s cabinet to announce possible policy easing measures this week, mostly to help smaller businesses. * As the market undergoes changes, investors should be aware of potential hazards, such as those posed by some of China’s real estate obligations and the Federal Reserve’s tapering rhetoric, according to Huaan Securities. * The brokerage selected semiconductor, new energy vehicle-related companies, and sectors with cheap valuations as sectors with strong earnings growth in the first half. * The Hang Seng index in Hong Kong rose 0.7 percent to 27,330.71 points, while the Hong Kong China Enterprises Index rose 0.3 percent to 9,853.95.** The Hang Seng technology index fell as much as 2.3 percent to a nine-month low before reversing course as investors sought bargains after a recent sharp correction. According to individuals familiar with the situation, China’s securities regulator is forming a team to assess Chinese companies’ plans for international initial public offerings (IPOs), especially those that employ a corporate structure, which Beijing claims has led to abuse. Luoyan Liu and Andrew Galbraith contributed reporting, while Amy Caren Daniel edited the piece./nRead More

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