Hong Kong shares close flat on China factory gate deflation; Fed in focus

** China's main Shanghai Composite index closed down 0.42% at 2,943.75, while the blue-chip CSI300 index ended down 0.18%.** China's May factory gate prices fell by the sharpest rate in more than four years, underscoring pressure on the manufacturing sector as the COVID-19 pandemic reduces trade flows and global demand.

Hong Kong shares closed little changed on Wednesday as risk sentiment was hit by a deepened deflation in China's producer prices, and investors waited for the U.S. Federal Reserve's economic projections.

** At the close of trade, the Hang Seng index was down 7.49 points, or 0.03%, at 25,049.73. The Hang Seng China Enterprises index rose 0.22% to 10,143.48.

** The sub-index of the Hang Seng tracking energy shares dipped 1.1%, while the IT sector rose 2.59%, the financial sector ended 0.22% lower and the property sector dipped 0.11%.

** The top gainer on the Hang Seng was Tencent Holdings Ltd, which gained 2.86%, while the biggest loser was Wharf Real Estate Investment Company Ltd, which fell 4.46%.

** China's main Shanghai Composite index closed down 0.42% at 2,943.75, while the blue-chip CSI300 index ended down 0.18%.

** China's May factory gate prices fell by the sharpest rate in more than four years, underscoring pressure on the manufacturing sector as the COVID-19 pandemic reduces trade flows and global demand.

** It will take some time for foreign demand to recover even as some countries have reopened their economies, a Chinese commerce ministry official Zhang Li told reporters.

** U.S. Federal Reserve policymakers on Wednesday will publish their first economic projections since the coronavirus pandemic set off a recession in February, estimates expected to signal a collapse in output this year, and near-zero interest rates for the next few years.

** Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.47%, while Japan's Nikkei index closed up 0.15%.

** The yuan was quoted at 7.0715 per U.S. dollar at 08:08 GMT, 0.07% firmer than the previous close of 7.0765.