China Stocks Retreat After Hitting 5 Year High

China’s main share index finished the day lower after hitting its highest level in more than five years during a volatile trading day.

The Shanghai Composite closed down 0.2% at 3,285.41 after jumping as much as 3% earlier on speculation of more monetary easing by the central bank.

Data on Friday showed China’s inflation rate was 1.5% in December, remaining near a five-year low.

The figure was up from November’s 1.4%, but below the official target of 3.5%.

The inflation figure supports other recent data that indicates continued weakness in the Chinese economy, and analysts said that may give the government room to introduce fresh policies aimed at supporting economic growth.

Hong Kong’s Hang Seng index closed up for the third consecutive day, rising 0.4% to 23,919.95.

via BBC

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