At close of trade, the benchmark Shanghai Composite index was down 0.67%, or 20.67 points, to 3,044.60. The Shenzhen Composite Index, which tracks stocks on China's second exchange, dropped 0.49%, or 8.30 points, to 1,678.26. The blue-chip CSI300 index declined 0.3%, or 10.76 points, to 3,530.90.

ECONOMIC NEWS: China's Industrial Capacity Utilization Rate Hits 73.6% In Q1 -China's industrial capacity utilization rate came in at 73.6% in the first quarter of 2024, down 0.7%age points from the same period last year, data released by the National Bureau of Statistics showed. Among three major industry classifications, the mining sector's utilization rate came in at 75% and the rate for the manufacturing sector stood at 73.8%. The utilization rate of the sector responsible for the production and supply of electricity, heat, gas and water stood at 71.2%, according to the data. In terms of major industries, coal mining and beneficiation, food manufacturing, and textiles reported utilization rates of 71.6%, 69.1% and 78%, respectively. Other sectors including general equipment manufacturing, automotive manufacturing, as well as computers, information and other electronic equipment recorded rates of 78.2%, 64.9%, and 74.7%, respectively, according to the data. Industrial capacity utilization refers to the ratio of actual output to production capacity. The government's statistical authorities release utilization rate data based on surveys covering around 110,000 enterprises across the country. The data is released on a quarterly basis.

China's Natural Gas Output Rises In January-March- China's natural gas output hit a record high in the first quarter of 2024, data from the National Bureau of Statistics (NBS) showed. The country produced 63.2 billion cubic meters of natural gas in the January-March period, up 5.2% from a year earlier. China's natural gas imports posted fast growth during this period, NBS data also revealed. A total of 32.79 million tonnes of natural gas was imported in the first three months of the year, up 22.8% year on year, according to the bureau.

PBoC Keeps Key Rates Steady to Support Economic Recovery- The People's Bank of China (PBoC) left key lending rates unchanged in April, including the 1-year loan prime rate at 3.45% and the 5-year rate at 3.95%. This decision, maintaining record lows, reflects Beijing's efforts to bolster the economy post-Q1 growth and amidst yuan depreciation pressure, aggravated by challenges in the property sector, deflation risks, and fragile trade performance.

CURRENCY NEWS: China's yuan declined to 5-month low against the dollar on Monday. Prior to the market's opening, the People's Bank of China set the midpoint rate at 7.1043 per U.S. dollar, firmer than the previous fix 7.1046. The onshore yuan opened at 7.2394 per dollar and was changing hands at 7.2432 at midday, 42pips weaker than the previous late session close.

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