China shares close mixed on tepid data

Chinese shares closed mixed on Tuesday, as a string of tepid economic data made investors less confident. The benchmark Shanghai Composite Index gained 0.37 percent, or 7.18 points, to end at 1,965.45. The Shenzhen Component Index went down 0.49 percent, or 37.16 points, to 7,600.47. Official data showed Tuesday that China's consumer price index (CPI) grew to 2.7 percent year on year in June from 2.1 percent seen in May, but analysts said the acceleration indicates little inflationary pressure. The producer price index (PPI), which measures wholesale inflation, fell 2.7 percent year on year last month, pointing to weak market demand. The economic data, along with lingering concerns over the resumption of massive initial public offerings, continued to weigh on market sentiment. As investors turned cautious, total turnover on the two bourses shrank to 116.5 billion yuan (18.87 billion U.S. dollars) from 149.96 billion yuan the previous trading day. However, the ChiNext Index, which tracks China's Nasdaq-style board of high-tech companies and companies with high growth potential, bucked the trend and rose 1.95 percent to close at 1,050.71 points. The electronic information sector rallied 2.04 percent on Tuesday. Brokerage software companies Shanghai Dzh Limited and East Money Information Co., Ltd. both rose by the daily limit of 10 percent. Cement and building materials producers were stronger, as the market expects a detailed national urbanization plan to be unveil soon.