Hong Kong stocks retreated on Monday as fears of interest rate hikes resurfaced, compounded by losses in mainland China’s A-share market. The Hang Seng Index closed down, driven by investor concerns about potential monetary policy tightening.

Market analysts cited the recent uptick in inflation data as a key factor fueling these concerns. This has led investors to reassess their expectations for future interest rate adjustments by central banks in the region.

Furthermore, the negative performance of A-shares on the mainland added to the downward pressure on Hong Kong stocks. Concerns about regulatory changes and economic growth prospects in China weighed on investor sentiment.

Trading volume remained moderate, suggesting a cautious approach among investors. Market participants are expected to closely monitor upcoming economic data releases and policy announcements for further clues about the future direction of interest rates and the overall economic outlook.