Hong Kong, mainland stocks decline as China's deflationary pressures deepen

Hong Kong and mainland stocks declined on Monday morning as China’s deflationary pressures deepened in February and concerns over US-China tariffs weighed on investor sentiment.

The benchmark Hang Seng Index dropped 511 points, or 2.11 percent, to 23,720 in midday trading, with turnover at HK$177.9 billion, down 2.78 percent from the previous session. 

The Hang Seng Tech Index fell 179 points, or 2.98 percent, to close at 5,857, while the Hang Seng China Enterprises Index slid 212 points, or 2.38 percent, to 8,701.

Baidu (9888) rose 1.54 percent to close at HK$92.20, making it the biggest gainer among the blue-chip stocks and Hang Seng Tech Index constituents.

In the mainland, the Shanghai Composite Index closed the morning session at 3,352 points, down 19 points or 0.59 percent, while the Shenzhen Component Index stood at 10,776 points, losing 66 points or 0.62 percent.

STAFF REPORTER