HK stocks down as mainland weighs inflation data
Mainland stocks ended on Wednesday at their lowest level in more than a year as a sell-off in AI-related supply chain shares deepened, while investors digested mixed domestic inflation data. In Hong Kong, the benchmark Hang Seng Index edged down 31 points, or 0.1 percent, to 24,314. The tech index rose 37 points, or 0.9 percent, to 4,174 but still hovered near a two-year low, while the China…
Mainland stocks plunged to their lowest level in over a year as investors grappled with mixed inflation data from the domestic market. Hong Kong's Hang Seng Index slipped 31 points, or 0.1 percent, to 24,314, while the tech index remained near a two-year low. In Shanghai, the Composite Index fell 33 points, or 0.88 percent, to close at 3,767 and the CSI300 Index dropped 1.4 percent.
The Shenzhen Component Index plunged 243 points, or 1.97 percent, to 12,110. Producer prices in mainland China surged to their fastest pace in more than four years, but consumer inflation remained below expectations. Energy-related and coal stocks rose as oil prices climbed. Nonetheless, sentiment towards AI supply chain shares turned more negative in the afternoon.
China's stock benchmarks have hit levels similar to two years ago, when a Beijing-led stimulus boosted share prices and sparked optimism for a bull run, now stalled in a three-month downtrend. HSBC analysts reduced their end-2026 targets for major Chinese stock indexes by 9 to 15 percent, suggesting an 8 to 15 percent upside from current levels.
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