Hong Kong stocks fell on Monday, weighed down by concerns over China’s inflation data. Investors are worried that the higher-than-expected inflation figures could prompt further monetary tightening measures from Beijing.

The Hang Seng Index closed down 1.0% at 23,442.98.

Analysts indicated that the market’s reaction was primarily driven by the anticipation of policy responses to control inflation in mainland China.

Specific sectors particularly sensitive to Chinese economic policy, such as property and banking, experienced notable declines.

Trading volume was moderate, suggesting a cautious approach from investors awaiting further clarity on China’s economic direction.

Looking ahead, market participants will be closely monitoring upcoming economic data releases and policy announcements from both Hong Kong and mainland China.