China stocks slip as caution persists

Chinese stocks closed lower on Wednesday, with the Shanghai Composite Index down 0.83 per cent and the Shenzhen Component Index falling 0.80 per cent, Xinhua reported.

Trading activity also witnessed a slowdown compared to the previous session. The combined turnover of stocks covered by the two major indices reached 688.58 billion yuan ($96.85 billion), down from 745.71 billion yuan on Tuesday.

Despite a general market decline, textile machinery companies suffered losses while aircraft manufacturers saw gains on Wednesday, as per the report.

The ChiNext Index, which tracks China’s growth enterprises similar to the Nasdaq, also closed lower. It lost 0.54 per cent to finish the day at 1,833.55 points, the report added.

Uncertainty about China’s economy and potential financial tightening may be causing cautious investor sentiment. Investors are likely waiting for more clarity before making big moves.