Tech Rally Powers Rise In China and Hong Kong Indexes, Inflation Reports Support Need for Additional Stimulus

Li Chen
10 Feb, 2025
Hong Kong

Stock market indexes in China and Hong Kong extended gains of the previous week, and investors reviewed the latest inflation reports. 

The Hang Seng index advanced 1.5%, and the CSI 300 index increased up to 0.3% following the continued surge in tech stocks in Hong Kong.

Market gains in China were muted after the U.S. threatened to impose an additional 25% tariff on steel and aluminum products, which could disrupt trade with Asian suppliers. 

On the economic front, investors reviewed the latest updates on inflation amid louder calls for clarity on the previously announced fiscal stimulus.

China's consumer price inflation accelerated to 0.5% in January from  0.1% in December. The National Bureau of Statistics reported on Sunday.

Consumer inflation rose to the highest level since August, driven by the seasonal effects of the Lunar New Year. 

Producer price inflation in January decreased for the 28th consecutive month, amid persistent demand weakness, according to a separate report by the statistical agency released on Sunday. 

Producer price inflation decreased 2.8%, matching the rate in the previous month, and remained at the softest pace since August, as policymakers announced a raft of stimulus measures. 

 

China Indexes and Stocks 

The Hang Seng index increased 1.6% to 21,468.93, and the mainland-focused CSI 300 index advanced 0.2% to 3,901.06. 

Technology stocks advanced in Monday's trading in the hopes that the affordable advances in artificial intelligence may provide a boost to earnings growth. 

Alibaba Group advanced 5.5% to HK $105.50, JD.com Inc increased 2.8% to HK $161.50, Meituan gained 5.6% to $162.70, and Kuaishou Technology advanced 2.9% to HK $47.65.