Deflation Concerns Spur Subtle Gains in China and Hong Kong Markets

China and Hong Kong stocks saw slight gains on Thursday amid deflation concerns, with investors pivoting towards sectors likely to benefit from potential government policies. The real estate sector and photovoltaic companies led the rise, while tech shares fell. Analysts anticipate further government measures to support the economy.


Devdiscourse News Desk | Updated: 10-07-2025 10:29 IST | Created: 10-07-2025 10:29 IST
Deflation Concerns Spur Subtle Gains in China and Hong Kong Markets
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China and Hong Kong stock markets experienced slight upward trends on Thursday as investors grappled with deflation anxieties, steering towards sectors that might benefit from forthcoming government policies.

The CSI300 Index and the Shanghai Composite Index showed modest gains, while Hong Kong's Hang Seng index saw a fractional rise despite a decline in tech giant shares. Analysts are closely monitoring for policy stimulus signals after producer deflation hit a near two-year low in June.

Photovoltaic firms and the real estate sector witnessed notable increases, fueled by expectations of policy support. In contrast, technology indices in Shenzhen and Shanghai dipped, following broader regional trends where the MSCI Asia ex-Japan index climbed, while Japan's Nikkei fell.

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