China's Inflation Reports Confirm Persistent Demand Weakness, Softcare IPO In Focus

Li Chen
10 Nov, 2025
Hong Kong

Benchmark indexes in China and Hong Kong diverged, and investors reviewed the latest inflation updates. 

The Hang Seng Index increased 0.6%, and the mainland-focused CSI 300 index edged down 0.2%, and consumer inflation edged higher in October. 

Consumer price inflation increased 0.2% from a year ago, according to the latest update from the National Bureau of Statistics.

The rise in non-food inflation, which increased to 0.9% from 0.7%, pushed the overall inflation above the flatline for the first time since January and reached its highest level since then. 

Core inflation, which excludes food and energy, accelerated to 1.2% from 1.0% in September, driven by expansion of trade-in programs and Golden Week spending. 

The producer price index decreased 2.1% annually in October, according to a separate report by the statistical agency. 

The measure of wholesale price inflation narrowed from a 2.3% fall in September, as the government reined in intense price competition in key heavy industries. 

Producer prices declined for the third consecutive year in a row, but the decline narrowed for the third month in a row as Chinese policymakers urged state-owned companies to modernize and restrain from intense competition. 

 

China Indexes and Stocks 

The Hang Seng Index increased 0.6% to 26,395.20, and the mainland-focused CSI 300 index decreased 0.2% to 4,667.62. 

Softcare Limited advanced 33% to HK $354.30 after the baby and feminine hygiene products company priced its initial public offering at HK $26.20 per share. 

The emerging and Central Asian markets-focused company sold 90.9 million shares and raised a net proceed of HK $2.38 billion.