Hong Kong Stocks and Stock Price Pressure from China Deflation Concerns

Hong Kong Stock Market Sees Decline Amid Deflation Fears

Hong Kong stocks fell on Monday as investor worries about deflation intensified after China reported a significant decline in consumer prices. The Hang Seng Index fell 0.7% to 24,064.95 as of 9.50am local time, paring some of the 5.6% gain from last week. Additionally, the Hang Seng Tech Index lost 0.6%. On the mainland, the CSI 300 Index slipped 0.5%, while the Shanghai Composite Index lost 0.3%.

Impact on Major Stocks

• Li Ning slumped 2.7% to HK$18.16.
• Haidilao fell 1.9% to HK$17.16.
• Travel booking platform Trip.com sank 2.4% to HK$499.20.

Amid the losses, some stocks saw gains. Baidu jumped 2.8% to HK$93.30, Li Auto added 2.3% to HK$113.40, and short-video platform Kuaishou Technology gained 2% to HK$65.

Consumer Price Index Highlights

Official data released on Sunday showed that China’s consumer price index (CPI), a critical gauge for measuring inflation, fell 0.7% in February from a year earlier, contrasting a 0.5% gain the previous month.

New Entrants in the Market

Two stocks debuted: Chifeng Jilong Gold Mining fell 0.4% to HK$13.66 in Hong Kong, while Boretech Resources Recovery Engineering jumped 34% to NT$87 in Taipei.

Performance in Asia-Pacific Markets

Other major Asia-Pacific markets strengthened, with Japan’s Nikkei 225 adding 0.3%, South Korea’s Kospi advancing 0.6%, and Australia’s S&P/ASX 200 increasing 0.3%.