Hong Kong stocks fall before official report pointing to China deflation risks

Consumer and producer prices probably fell in October from a year earlier, according to forecasts before a government report on Thursday

CNOOC and PetroChina slipped after crude oil prices hit a three-month low on worries about shrinking demand

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A pedestrian passes by the electronic screen outside the Exchange Square in Central in June 2023. Photo: AP

Published: 10:26am, 8 Nov 2023Updated: 4:45pm, 8 Nov 2023

Hong Kong stocks fell for a second day before a government report that may show consumer and producer prices in China fell last month.

The Hang Seng Index dropped 0.6 per cent to 17,568.46 on Wednesday. The Tech Index tumbled 0.9 per cent and the Shanghai Composite Index lost 0.2 per cent.

CNOOC slid 2.5 per cent to HK$12.50 and PetroChina declined 2.2 per cent to HK$4.98 as crude oil futures fell to a three-month low on concerns about shrinking demand. Personal computer maker Lenovo declined 3.9 per cent to HK$9.20 and Alibaba Group weakened 0.8 per cent to HK$82.50.

Tempering losses, Chinese developer Longfor Group rallied 6.8 per cent to HK$12.94 and property-management firm Country Garden Services jumped 8.9 per cent to HK$7.75.

Consumer prices probably dropped 0.1 per cent in October from a year earlier, while factory-gate prices weakened 2.7 per cent, according to the consensus estimates compiled by Bloomberg. The statistics bureau will publish the data on Thursday.