China's Deflation Worries Keep Stocks Under Pressure, Five New Listings In Hong Kong

Li Chen
09 Jul, 2025
Hong Kong

Stocks in China lacked direction amid ongoing trade uncertainty and persistent worries of deflation. 

The Hang Seng index decreased 0.8%, and the mainland-focused CSI 300 index edged slightly higher as investors reviewed the latest reports on inflation. 

 

China's CPI and PPI Confirm Ongoing Deflation Trends

Consumer price inflation edged up unexpectedly 0.1% in June, reversing the decline by the same amount in the previous month, the National Bureau of Statistics reported Wednesday. 

Prices of goods decreased 0.2%, services increased 0.5%, and food edged down 0.3% from a year ago, respectively. 

The overall price inflation rose for the first time in five months, but demand remained weak despite government subsidy programs to encourage the purchase of household goods and consumer electronics. 

Core prices, which exclude volatile food and energy prices, advanced 0.7% from a year ago, their highest level in 14 months.

The producer price index, the measure of prices charged by suppliers, edged down for the 33rd consecutive month and extended the 3.3% decrease in the previous month, the National Bureau of Statistics said in a separate report. 

Producer prices fell 2.6% in the first half, and the outlook for prices in the second half is weaker because of the persistent weak domestic demand and uncertain outlook for exports.

 

China Indexes and Stocks 

The Hang Seng Index decreased 0.8% to 23,960.34, and the mainland-focused CSI 300 index gained 0.4% to 4,012.14. 

Five companies listed their shares on the Hong Kong Stock Exchange, as more mainland companies seek capital for international expansion. 

Wuhan Dazhong Medical jumped 17% to HK $23.20, and the dental company priced its initial public offering at HK $20 per share. 

The dental services provider sold 10.8 million shares and raised gross proceeds of HK$217.4 million. 

Fortior Technology gained 10% to HK $132.60, and the company priced its public offering at HK $120 per share. 

The advanced chip designer for electric motor control and drivers sold 18.7 million and raised a total of HK $2.8 billion. 

Lens Technology Co. Ltd. jumped 6% to HK $19.12, and the lens sensor provider for Apple priced its initial public offering at HK $18.18 per share. 

The precision manufacturing company for consumer electronics and electric vehicles raised a total of HK $4.7 billion.

Beijing Geekplus Technology traded unchanged at HK $16.81, and the company priced its public offering at HK $16.80 per share. 

The autonomous mobile robot maker for warehouses sold 161.45 million shares and raised a total of HK $2.7 billion. 

Beijing Xunzhong Communication decreased a fraction to HK $13.46, and the company priced its public offering at HK $13.55 per share. 

The cloud-based communication provider in China, with a market share of 1.8%, sold 30.4 million shares and raised a total of HK $412.5 million. 

The Hong Kong Stock Exchange led the world's leading stock markets after a string of large and medium-sized companies from the mainland sought new capital. 

A total of 44 new companies raised HK $107 billion in the first half of 2025, a sevenfold jump from HK $13.4 billion when 30 new companies raised capital a year ago, according to the Hong Kong Stock Exchange.