2 Minute Read by Reuters Staff Reuters, Shanghai, July 9 – China’s equities fell on Friday after statistics revealed that the country’s annual factory gate inflation remained uncomfortably high, highlighting the economy’s rising stresses. As Beijing’s surprise hint at monetary easing earlier this week failed to provide assistance and exacerbated concerns about the country’s economic recovery, major indexes barely moved for the week. ** The CSI300 index of blue-chip stocks declined 0.4 percent to 5,069.44, while the Shanghai Composite Index remained unchanged at 3,524.09. ** For the week, the CSI300 fell 0.2 percent, while the SSEC rose 0.2 percent. ** China’s factory gate inflation dipped in June, but the annual rate remained high. China’s cabinet this week signaled probable policy easing measures in response to persistently rising inflationary pressures in the manufacturing sector. * * China’s cabinet said on Wednesday that it would use timely cuts in the bank reserve requirement ratio (RRR) to support the real economy, particularly small businesses.** However, analysts said the hints did not indicate a shift in monetary policy and raised concerns that the economic recovery was weaker than expected. ** The brokerage selected semiconductor, new energy vehicle-related companies, and sectors with cheap valuations as sectors with strong earnings growth in the first half. This week, tech stocks shone, with Shanghai’s STAR50 index gaining for the ninth week in a row.** Over the weekend, six Chinese ministries, including the Ministry of Industry and Information Technology, pledged to foster outstanding manufacturers and assist qualified companies in obtaining capital from capital markets. Shanghai Newsroom contributed reporting, and Amy Caren edited the piece. Daniel/n
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