Hong Kong stocks slip on China deflation fears as consumer prices decline

The Hang Seng Index drops below 24,000 as it gives up part of last week’s 5.6 per cent gain

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A person carrying shopping bags crosses a street in Beijing on March 9, 2025. Photo: EPA-EFE

Published: 10:20am, 10 Mar 2025Updated: 4:51pm, 10 Mar 2025

Hong Kong stocks fell, taking the benchmark below 24,000 points on Monday, as investors worried about deflation after China reported a decline in consumer prices.

The Hang Seng Index fell 1.9 per cent to 23,783.49, slashing the 5.6 per cent gain recorded last week. The Hang Seng Tech Index lost 2.5 per cent. On the mainland, the CSI 300 Index slipped 0.4 per cent, while the Shanghai Composite Index lost 0.2 per cent.

Semiconductor Manufacturing International, known as SMIC, slumped 4.7 per cent to HK$52.05, and Alibaba Group Holding tumbled 3.9 per cent to HK$134.50. Travel booking platform Trip.com plunged 3.6 per cent to HK$493.20, while sportswear brand Li Ning dropped 4.5 per cent to HK$17.82.

Paring the losses, search-engine company Baidu jumped 1.3 per cent to HK$92, and container shipping service firm Orient Overseas (International) surged 3 per cent to HK$110.30.

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.