China stocks close at 14-month low as US inflation stokes Fed fears

By Reuters News
An electronic board shows Shanghai and Shenzhen stock indices as people walk on a pedestrian bridge at the Lujiazui financial district in Shanghai, China April 11, 2025. REUTERS/Go Nakamura REFILE - QUALITY REPEAT

SHANGHAI, Oct 15 (Reuters) - Chinese stocks fell on Thursday to their lowest close in 14 months, tracking broad weakness across global markets, as technology shares led declines after stronger-than-expected US inflation data fuelled concerns that interest rates could rise further.


** At the close, both the Shanghai Composite index .SSEC and the blue-chip CSI300 index .CSI300 dropped 1.6%.

** Both indexes recorded their lowest closing levels since August 2025.

** The tech-focused STAR50 Index .STAR50 lost 1.5%, while the startup board ChiNext Composite Index .CNT fell 2.9%.

** "The recent pullback seems to be driven more by a concentrated unwinding of elevated tech crowding, while mutual funds also face pressure related to break-even redemptions," said Lei Meng, China equity strategist at UBS Securities.

** "Geopolitics, US Treasury yields and oil-price volatility have contributed to tighter dollar liquidity due to their impact on inflation expectations, weighing on market risk appetite."

** The dollar rose while Wall Street stocks fell after data showed US consumer prices rose more than expected last month, briefly reviving bets the Federal Reserve may raise interest rates.

** "The main theme overnight was a hotter-than-expected US inflation print which reignited Fed rate hike fears," analysts at Commerzbank said in a note.

** Meanwhile, investors are turning their attention to China's third-quarter gross domestic product data due on Monday for clues on the strength of the economic recovery following a string of upbeat data ranging from trade to credit lending.

** The International Monetary Fund on Thursday projected Asia's economic growth would moderate next year and warned of heightening risks from the Iran war-induced energy shock, a potential correction in the AI boom and spillovers from rising global bond yields.

** In Hong Kong, the benchmark Hang Seng index .HSI fell 1%, while the city's tech shares .HSTECH lost 2.7%.

** Hong Kong shares of Alibaba 9988.HK slumped 3.7%.

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