Dec 9, 2024 at 4:36 am GMT
Hong Kong (Reuters)- China and Hong Kong stocks dropped in a volatile trading session on Monday as inflation data undershotestimatesdespite Beijing's recent efforts,with analysts expecting more stimulus measures in a key policy meeting this week.
** At the midday break, the Shanghai Composite index. SSEC was down 0.4% at 3,390.62 points.
** China's blue-chip CSI300 index.CSI300was down 0.51%, with the consumer staples sector.CSI000912declining 0.75% and the real estate index.CSI000952sliding 1.98%.
** Hong Kong's benchmark index, the Hang Seng Index.HSI, was down 0.57% at 19,753.26.
** Data released on Monday showed China'sconsumer inflation weakenedin November while factory deflation persisted, suggesting Beijing's recent efforts toshore up economic demandare having only limited impact.
** The consumer price index rose 0.2% inNovemberfrom a year earlier,hitting a five-month low and missing estimates,while the producer price index fell 2.5% year-on-yearlast month.
** With the headwinds persisting, investors await more policy direction from the Central Economic Work Conference ( CEWC ) this week, where policymakers are expected to chart the course for the country's economy in 2025.
** Beijing is likely to recognise the growth headwinds from domestic demand weakness and external uncertainties, and set more supportive policy tones, economists at UBS said in a note to clients on Monday.
** "We expect the CEWC may call for higher headline fiscal deficit," they wrote. Beijing could also allow more issuance of special government bond to support trade-in program of more consumer goods, and larger issuance of special local government bond to support local debt swap and property inventory destocking, they added.
Reporting by Hong Kong Newsroom; Editing by Janane Venkatraman
Sumber : Reuters
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