China stocks end lower as economic recovery disappoints

** "Beijing may have to introduce a new round of supportive measures in the second half of the year, including cutting benchmark lending rates to bolster growth," said Ting Lu, chief China economist at Nomura. ** Insurance stocks declined 2.4%, while non-ferrous metal and liquor shares retreated 0.8% and 1.1%, respectively.

China stocks fell on Wednesday, extending losses from the previous session following disappointing economic data for April, prompting some economists to downgrade the country's growth forecasts.

** China's blue-chip CSI300 Index closed down 0.5%, while the Shanghai Composite Index lost 0.2%. ** Hong Kong's benchmark Hang Seng Index slumped 2.1%, while the China Enterprises Index dropped 2.3%.

** Other Asian shares were subdued and the dollar hovered around a five-week peak as investors remained risk-averse, with the U.S. debt ceiling talks and a mixed set of economic data weighing on sentiment. ** China's April industrial output and retail sales growth undershot forecasts, suggesting the economy lost momentum at the beginning of the second quarter and intensifying pressure on policymakers to shore up a wobbly post-COVID recovery.

** Barclays economists cut China's 2023 GDP forecast to 5.3% from 5.6% previously on "concerns around the sustainability of the recovery in housing and consumption". ** "Beijing may have to introduce a new round of supportive measures in the second half of the year, including cutting benchmark lending rates to bolster growth," said Ting Lu, chief China economist at Nomura.

** Insurance stocks declined 2.4%, while non-ferrous metal and liquor shares retreated 0.8% and 1.1%, respectively. ** At the other end, aerospace defence companies advanced 2.4% and communications equipment stocks added 1.8%.

** In Hong Kong market, tech giants declined 2.2%, healthcare firms plunged 3.9%, and mainland property developers tumbled 4.6%. ** China's new home prices rose for the fourth straight month in April but at a slower pace, heightening fears that pent-up demand after the country's economic reopening is fading.