Shanghai shares fall on weak growth in China's industrial production

Shanghai stocks fell today as investors turned cautious after China’s manufacturing production grew at its weakest since last December.

The Shanghai Composite Index dipped 0.18 percent to close at 3,163.18 points.

Market sentiment dimmed after the Caixin Manufacturing PMI dipped to a four-month low last month. The Caixin China General Manufacturing Purchase Managers’ Index stood at 51 for March, down 0.6 points from February, according to the survey done by financial information service provider Markit and sponsored by Caixin Media Co Ltd.

Production and total new orders both expanded at their weakest for four months while exports rose marginally, according to the report from Caixin.

“The growth momentum of the Chinese manufacturing economy may have weakened in March. The manufacturing PMI reading in March showed that demand was not as strong as expected, leading to lower willingness of manufacturers to produce and restock,” said Zhengsheng Zhong, director of macroeconomic analysis at CEBM Group.

Banks, coal producers and consumer shares were among the biggest decliners today. Banks lost 0.80 percent and coal producers shed 0.73 percent, according to financial information provider Tonghuashun.

Shanxi Xinghuacun Fen Wine Factory Co Ltd declined 3.77 percent to 52.90 yuan (US$8.43), China Construction Bank Corporation lost 3.10 percent to 7.51 yuan and Zhengzhou Coal Industry & Electric Power Co Ltd fell 3.41 percent to 5.39 yuan.