BEIJING: Chinese stocks fell to a seven-week low in Hong Kong trading, led by financial companies, after producer prices declined more than forecast last month.
Citic Securities Co. and Bank of China Ltd. dropped more than 1 percent. Galaxy Entertainment Group Ltd. and Sands China Ltd. plunged at least 4 percent after Deutsche Bank AG recommended selling Macau casino stocks. Poly Real Estate Group Co. dropped 2.6 percent in Shanghai after reporting sales fell 39 percent in February. Lens Technology Co. will sell initial public offering shares, kicking off 23 IPO sales this week.
The Hang Seng China Enterprises Index, or H shares, decreased 1 percent to 11,558.20 at 1:08 p.m., heading for the lowest level since Jan. 19. The Shanghai Composite Index lost 0.2 percent. Producer prices fell 4.8 percent in February, extending a record stretch of declines to 36 months. The consumer-price index climbed 1.4 percent, compared with the median projection for a 1 percent gain in a Bloomberg survey.
“The data show China’s economy is still in a downward trend,” said Zhang Yanbin, a strategist at Zheshang Securities Co. in Shanghai. “Cyclical stocks like banks are reacting to the weakness in the economy.”
The Hang Seng Index retreated 0.6 percent, while the CSI 300 Index slipped 0.3 percent. The Bloomberg China-US Equity Index slid 1.1 percent in New York on Monday.
