China Inflationary Forces Cooled In January, SMIC Offered Cautious

Li Chen
11 Feb, 2026
Hong Kong

Stocks in China attempted to advance ahead of Lunar New Year holidays next week, and investors reacted to corporate news.

The Hang Seng Index increased 0.4%, and the mainland-focused CSI 300 Index advanced 0.2% amid expectations of an improving earnings outlook for artificial intelligence-linked stocks.  

In thin trading ahead of next week's holiday-shortened week, investors reacted to the latest quarterly results from Wuxi Biologics, SMIC, Shaanxi International, and NetEase. 

China's inflationary pressures eased in January amid persistent demand growth worries and supply overcapacity worries. 

Consumer price inflation eased to 0.2% in January from 0.8% in December, driven by a decrease in food prices for the first time in three months. 

The so-called core inflation, which excludes food and energy prices, inched higher 0.8% after rising by 1.2% in November and December. 

On a monthly basis, consumer price inflation rose 0.2%, matching the December level, added the National Bureau of Statistics. 

China's producer price inflation declined for the 40th consecutive month as businesses struggled with intense price competition, according to a separate report by the statistical bureau. 

Producer price inflation decreased 1.4% in January, slowing from a 1.9% decline in December and marking the weakest fall since July 2024 as Beijing urged businesses to refrain from excessive price competition. 

 

China Indexes and Stocks 

The Hang Seng Index added 0.4% to 27,281.92, and the tech-heavy Nasdaq Composite advanced 0.2% to 4,717.41. 

Lenovo Group advanced 1% to HK $9.44 ahead of the PC maker's quarterly results amid expectations of the company benefiting from a data center-driven investment supercycle.

SMIC declined 1% to HK$68.85 after the advanced chipmaker's results surpassed market expectations based on strong demand for its chips, but the company's cautious outlook negatively impacted its stock price. 

The company reported a 61% rise in profit to $172.9 million in the fourth quarter, and revenue surged to a record high of $2.49 billion.