Hong Kong stock rally fades as investors reassess China’s economic outlook
While producer prices beat estimates and consumer prices rose, analyst says the readings must be interpreted cautiously
The Hang Seng Index closed 0.3 per cent higher at 26,231.79, trimming a gain of as much as 0.6 per cent. The Hang Seng Tech Index rose 0.2 per cent. On the mainland, the CSI 300 Index climbed 0.5 per cent and the Shanghai Composite Index added 0.9 per cent.
Alibaba Group Holding rallied 2.7 per cent to HK$146.50 and peer JD.com surged 2.6 per cent to HK$114.60. Gold producer Zijin Mining Group advanced 2.9 per cent to HK$38.26 on expectations of growing demand for the precious metal on the back of rising geopolitical tensions.
Tempering the gains, Xinyi Solar Holdings tumbled 3.7 per cent to HK$3.11 and Meituan lost 2.5 per cent to HK$98.50.
The inflation reading should be interpreted cautiously, as the improvement in producer prices was largely attributed to rising global commodity prices that were recently elevated by geopolitical tensions, said Zhang Zhiwei, chief economist at Pinpoint Asset Management in Hong Kong.