Hong Kong stocks slip on China deflation fears as consumer prices decline
Although consumer prices are expected to rebound in March, China’s economic growth will ‘lose some momentum’, Nomura economist says
The Hang Seng Index fell 1.6 per cent to 23,844.53 as of 10.55am local time, paring some of the 5.6 per cent gain recorded last week. The Hang Seng Tech Index lost 2.1 per cent. On the mainland, the CSI 300 Index slipped 0.5 per cent, while the Shanghai Composite Index lost 0.3 per cent.
Semiconductor Manufacturing International, known as SMIC, slumped 3.6 per cent to HK$52.65, and Alibaba Group Holdings tumbled 2.9 per cent to HK$135.90. Sportswear brand Li Ning dropped 3.3 per cent to HK$18.04, while hotpot chain Haidilao fell 2.6 per cent to HK$17.04.
Paring the losses, search-engine company Baidu jumped 3.9 per cent to HK$94.35, and electric car maker Li Auto added 0.6 per cent to HK$111.60. Smart appliances maker Haier Smarthome advanced 1.2 per cent to HK$26.
Official data released on Sunday showed that China’s consumer price index (CPI), a gauge for measuring inflation, fell 0.7 per cent in February from a year earlier, versus a 0.5 per cent gain in the previous month. It was the first negative reading in 13 months.
Moreover, China’s Producer Price Index (PPI), another inflation gauge, fell 2.2 per cent year on year in February, the 29th straight month of declines since October 2022.
