The Shanghai Composite fell 0.7% to around 3,880, while the Shenzhen Component dropped 0.6% to 13,200 on Wednesday, marking a second consecutive session of losses as rising consumer inflation reduced expectations for new policy support. Consumer prices in China rose 0.7% year-on-year in November, the highest in nearly two years, while producer price deflation deepened. Earlier this week, China’s Politburo highlighted the need to boost domestic demand in 2026 but signaled a cautious approach to stimulus, disappointing investors. Attention now turns to the upcoming Central Economic Work Conference, where policymakers are expected to outline next year’s growth targets and policy plans. High-growth technology and new energy stocks led the declines, with notable losses from Foxconn Industrial (-4.9%), Eoptolink Technology (-2.3%), Hygon Information (-3.5%), Contemporary Amperex (-1.3%) and Sungrow Power (-4.4%).
