China Stocks Face Persistent Doldrums Amid Economy Worries

China's stock market continues to face difficulties despite regional market rebounds, with concerns about its slow economic recovery. The CSI 300 Index saw minor declines on Tuesday, while foreign investors' confidence remains low. Weak retail sales and deflationary pressures are contributing factors.

China's stock market struggled to gain momentum on Tuesday, marking continued concerns over its lagging economic recovery even amid a regional market rebound.

The CSI 300 Index slipped 0.2% by midday after an initial rise, while Hong Kong's Hang Seng inched up by 0.5%. Analysts suggest that China's market is insulated from global market volatility due to its recent underperformance.

Experts highlight that China's slow economic growth, coupled with weak retail sales and persistent deflationary pressures, keeps investors wary. Despite Monday's regional market slump, Japanese stocks rallied at the open on Tuesday, reflecting a broader recovery across Asian markets. Market expectations are high for a potential Federal Reserve rate cut as early as September.

(With inputs from agencies.)