China stocks mixed as economic data in focus; Hong Kong rises
- Hong Kong’s Hang Seng Index rose 0.7%
SHANGHAI: Shanghai and Hong Kong stocks rose on Monday, while China’s blue-chip index fell, as weakness in tech shares outweighed gains in consumer stocks.
China’s July inflation eased, with traders closely monitoring other gauges of economic health as they debate Beijing’s policy path. The Shanghai Composite Index was up 0.2% by the midday break, having touched a three-week high.
Hong Kong’s Hang Seng Index rose 0.7%. The blue-chip CSI300 index, however, lost 0.5%.
China’s producer price inflation eased more than expected in July to its weakest in three months, while consumer inflation also cooled, official data showed on Sunday, as global energy prices retreated despite the US-Israeli war on Iran.
“Despite the global oil price shock and the global AI boom, China’s underlying inflation remains stubbornly subdued, owing to persistent downward pressures from the property bust,” Nomura said in a note.
However, Nomura does not expect any monetary policy easing this year, saying “Beijing is likely to rely more on fiscal policy measures to stabilize growth, while the sustained export strength will limit the scale of policy support.“
Nanhua Futures said that July economic data is crucial, and signs of broad weakness could prompt Beijing to roll out fresh stimulus around the end of September.
Meanwhile, a Reuters poll showed that China’s new bank loan issuance likely totalled 45 billion yuan ($6.67 billion) in July, plunging from 1.61 trillion yuan in June. Analysts say there are signs money has been rotating into traditional sectors following the recent sell-off in AI-related shares.
China’s CSI 300 Consumer Staples Index jumped nearly 3%, while an index of real estate stocks gained 2%.
Tech shares slid further.
The CSI 300 Telecommunication Services Index plunged 5%, the CSI AI Index declined nearly 4%, while the STAR Chip Index lost 2%.
In Hong Kong, the market was driven by consumer and property shares, while chipmakers and AI stocks sank. ‑Reuters
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