Chinese shares mixed in morning trade, Shanghai down 0.55 percent

Chinese share prices ended Monday morning trade mixed with Shanghai down 0.55 percent on cautious trade after official data showed April inflation spiked to near 12-year highs, dealers said.

China's consumer price index spiked to 8.5 percent year-on-year in April, said the National Bureau of Statistics.

The figure marked a reacceleration after inflation momentarily weakened to 8.3 percent growth in March from 8.7 percent in February, and also triggered concerns over further potential monetary measures to slow inflation.

The benchmark Shanghai Composite Index, which covers A and B shares, was down 19.78 points to 3,593.72.

"The high inflation will likely erode corporate earnings and also renewed investors' speculations on further interest rate hikes by the central bank,"said Hu Yu, an analyst at ChinaLion Securities.

Aircraft makers were in the spotlight as sentiment was buoyed by the launch of the long expected launch of a state-owned manufacturer of large jets last Sunday in Shanghai.

The Shanghai A-share index shed 20.71 points or 0.55 percent to 3,770.81 points, but the Shenzhen A-share index added 2.20 points or 0.19 percent to 1,154.81.

(Agencies)