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China stocks fall as disinflationary pressures worry investors; HK up
SHANGHAI, April 11 (Reuters) - Chinese stocks fell on Tuesday, as sentiment took a hit after data showed China's March consumer price growth was at its slowest since September 2021, while shares in Hong Kong were up.
** China's blue-chip CSI300 Index and the Shanghai Composite Index both closed down 0.1%.
(image: https://prediksii-hk.azurefd.net) ** Hong Kong's benchmark Hang Seng Index and the China Enterprises Index rose 0.8% each.
** China's consumer inflation in March was at its slowest since September 2021, suggesting persistent demand weakness and potential for further policy stimulus.
The reading was also below a Reuters poll estimate.
** Meanwhile, Paito Warna Hongkong producer deflation sped up, extending price declines for a sixth straight month.
** China's March inflation print indicates the world's second-largest economy is running a disinflation process, analysts said.
** The disinflationary pressure reflected slow consumption demand recovery amid a reopening and robust supply chain, analysts at Mizuho said in a note.
** "Economic recovery is on track but not strong enough to push up prices," said Zhiwei Zhang, president at Pinpoint Asset Management.
"There is room for fiscal and monetary policies to boost growth further," he added.
** Analysts at Nomura concurred that they expect Beijing to step up policy support in the coming months as low inflation readings could provide Beijing with more room for stimulus.
** In China, the CSI Media Index continued its rally and climbed 5.0%, while consumer staples and food and beverage shares slumped 1.3% and 1.8%, respectively.
(image: https://keluaran-macaau.azurefd.net) ** Back from Easter holidays, property stocks traded in Hong Kong rose 2.6%, with mainland property shares jumping 6.9%.
Tech stocks closed up 0.3%, with Tencent down 2.3%. (Reporting by Shanghai Newsroom; editing by Uttaresh Venkateshwaran and Sonia Cheema)
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