Hong Kong stocks hit 4-year high as China inflation data boosts rate cut hope

Consumer prices on the mainland slipped 0.4 per cent in August from a year earlier, compared with estimates of a 0.2 per cent decrease

The Hang Seng Index advanced 1.1 per cent to 26,225.60 as of 10.12am local time, poised for the highest close since September 10, 2021. The Hang Seng Tech Index gained 2.1 per cent.

On the mainland, the CSI 300 Index and the Shanghai Composite Index both added 0.2 per cent.

China Unicom rallied 4.8 per cent to HK$10.08 and search engine operator Baidu gained 5.2 per cent to HK$111.60. Alibaba Group Holding jumped 3 per cent to HK$146.20 and Tencent Holdings advanced 1.5 per cent to HK$636.50.

Consumer prices on the mainland dropped 0.4 per cent year on year in August, according to data from the National Bureau of Statistics on Wednesday. It was steeper than the consensus estimate of a 0.2 per cent decrease. Consumer prices were unchanged in July.