While Chinese stocks weakened in the middle of the trading week, the Hong Kong stock market strengthened solidly. Chinese markets reacted to worse-than-expected inflation data, and Hong Kong set out on a wave of purchases of technology and development stocks.
The stock index of the Shanghai Stock Exchange lost 0.4 percent on Wednesday. The main index CSI300 then weakened even more, falling 0.5 percent. Investors reacted negatively to data on the development of the producer price index. Indeed, industrial prices rose 13.5 percent in October, indicating that the Chinese economy is on the rise. That is, a situation where economic stagnation and rising price levels, ie inflation, combine. The shares of companies engaged in coal mining or the sale of consumer goods weakened the most.
In Hong Kong, on the other hand, the shares went in the opposite direction. The Hang Seng stock index strengthened by 0.7 percent, the index including Chinese companies even strengthened by 1.2 percent. The development titles and shares of real estate companies were the most successful. Developer Fandasia Holdings even saw a 36.7 percent increase in its shares. Technologies that boosted by more than two percent overall also performed well.
