China Indexes Extended 3-day Rally, China's Consumer Price Inflation Accelerated In July

Li Chen
09 Aug, 2024
Hong Kong

Stocks in Shanghai and Hong Kong recovered for the third day in a row after global market volatility subsided. 

Calmness returned to financial markets after investors reassessed the U.S. economic outlook and set aside the worry of a possible slowdown in artificial intelligence spending by mega-cap companies. 

On Monday, the worries about the U.S. economic slowdown sparked a worldwide market sell-off that wiped out nearly $6 trillion in market capitalization, with market indexes in Japan dropping as much as 20% over three days of trading to Tuesday. 

In Friday's trading, the Hang Seng index jumped nearly 1.8% and the CSI 300 index advanced 0.3% after consumer price inflation accelerated in July. 

Consumer price inflation increased to 0.5% in July from 0.3% in June, the National Bureau of Statistics reported Friday. 

Consumer price inflation was positive for the sixth month in a row, indicating rising demand after the central government ramped up stimulus spending. 

Core inflation, which excludes food and energy prices, rose 0.4%, at the slowest pace in four months. 

On a monthly basis, consumer price inflation rose 0.5%, the gain since April and 

Producer price inflation decreased 0.8% in the month, matching the rate in the previous month, the statistical agency noted in a separate report released Friday. 

 

China Stock Movers 

The Hang Seng index soared 1.7% to 17,191.43, and the CSI 300 index advanced 0.3% to 3,347.69. 

For the week, the Hang Seng extended the weekly increase to 3%, and the CSI 300 index closes down 0.6%. 

SMIC increased 6.3% to $16.80 after the advanced chip maker reported better-than-expected second quarter results. 

Kweichow Moutai rose 0.7% to 1,440.21 yuan, and the liquor maker increased shareholder payout after profit jumped 16% in the first half. 

Core brand sales increased to 68.6 billion yuan, and other series liquor sales rose to 13.2 billion yuan. 

Technology and electric vehicle makers were among the leading gainers in Friday's market rally. 

Alibaba Group increased 1.8% to HK $78.0, Tencent Holdings advanced 0.4% to HK $369.60, and Meituan jumped 1.4% to HK $106.0. 

Li Auto jumped 4.5% to HK $78.0, BYD gained 3.5% to HK $215.0, and Xpeng added 2.8% to HK $27.45.