Chinese stocks snapped five straight days of gains after September’s manufacturing data dropped the most in over three years, underlining the pressure faced by mainland companies amid the 15-month US-China trade war. The benchmark Shanghai Composite fell 0.6 per cent to 2991.05, while the CSI 300, which tracks blue chips listed on Shenzhen and Shanghai, eased 0.4 per cent to 3,936.25. In Hong Kong, the Hang Seng snapped three days of gains, ending marginally lower at 26,506.93. Traders stayed on the sidelines ahead of Chief Executive Carrie Lam Yuet-ngor’s policy address on Wednesday. Linus Cheung, chief strategist at First Shanghai Securities, said that given the state of Hong Kong’s social unrest and economic downturn, “traders will be closely watching for more details on the government’s land and housing policies”. China’s rising pork prices worsens outlook of Asia’s largest stock market as scope to stimulate economy is reduced These issues were partly responsible for triggering the more than four-month protests. Cheung noted that even if Hong Kong property stocks were to move on news from the policy address, their impact on the index was likely to be subdued. On Tuesday, the National Bureau of Statistic reported that China’s producer price index, which tracks the price charged by manufacturers at the factory gates, sank further to minus 1.2 per cent from a year earlier, and was worse than August’s reading of minus 0.8 per cent. However, Cheung said that the overall trend for the A share market was still positive. “This is because both foreign and domestic capital flowed into Chinese equities in September and has continued this month,” he said. Figures show that net inflow into the A share market through the stock connect in Hong Kong reached a historical high of 64.6 billion yuan (US$9.1 billion) in September. On the mainland, tech stocks weighed on the indices. 360 Security Tech lost 5.4 per cent tot 24.03 yuan and Sanan Optoelectronic shed 6.2 per cent to 13.53 yuan. PetroChina fell 0.8 per cent to 6.11 yuan and China Yangtze Power dropped 1.8 per cent to 17.9 yuan. Capping the losses was liquor giant Kweichow Moutai, which rose 2.6 per cent to 1,211 yuan. In Hong Kong, trading was mixed, with the benchmark moving in a narrow range of 176 points. China Mobile weighed on the index, losing 0.9 per cent to HK$65.8 and China Unicom dropped 3 per cent to HK$8.38. But counterbalancing the losses were index heavyweights Tencent Holdings and China Construction Bank, which rose 0.2 per cent and 0.6 per cent to HK$328.8 and HK$6.26, respectively. EuroEyes International Eye Clinic, one of Germany’s largest independent eye surgery groups, surged 46.6 per cent on its debut. It closed at HK$11 compared to its offer price of HK$7.5.