China stocks extend losses despite favorable economic data

Chinese stocks dropped for the fifth consecutive trading day on Friday after official statistics showed that the country's inflation dropped to a 33-month low. The benchmark Shanghai Composite Index dropped 0.12 percent, or 2.44 points, to close at 2,069.07. The Shenzhen Component Index closed at 8,356.67, down 0.51 percent, or 42.71 points. Combined turnover shrank to 75.56 billion yuan (11.99 billion U.S. dollars) from 95.94 billion yuan the previous trading day. Losers outnumbered giners by 471 to 416 in Shanghai and by 829 to 620 in Shenzhen. China's statistics bureau announced Friday that the inflation rate dropped to a 33-month low of 1.7 percent in October, down from 1.9 percent in September and 2 percent in August. Fixed-asset investment and retail sales also saw strong growth during the first 10 months, indicating that the country's economy is gradually stabilizing. However, investor confidence was not sufficiently lifted after consecutive declines in major stock indices throughout the week. The oil industry led drops on Friday, with the sector's sub-indices dropping 0.89 percent. PetroChina, the country's largest oil and gas producer, dropped 0.34 percent to close at 8.69 yuan per share, while Sinopec, the country's largest oil refiner, dropped 0.63 percent to close at 6.26 yuan. Bucking the trend, major commercial banks mostly gained on Friday. Industrial and Commercial Bank of China (ICBC), the country's largest commercial bank, gained 0.26 percent to 3.88 yuan, while the Agricultural Bank of China gained 0.39 percent to 2.58 yuan.