Shanghai and Hong Kong stocks rose on Monday, while China's blue-chip index declined as gains in consumer and property shares were offset by a sell-off in technology stocks, with investors assessing fresh inflation data for clues on the country's policy outlook, Reuters reported.The Shanghai Composite Index gained 0.2% by the midday break after touching a three-week high. Hong Kong's Hang Seng Index advanced 0.7%, while the blue-chip CSI300 index fell 0.5%.China's inflation data showed continued weakness in domestic price pressures. Producer price inflation eased more than expected in July to its weakest level in three months, while consumer inflation also cooled, according to official data released on Sunday.The data added to concerns about persistent deflationary pressures in the world's second-largest economy. Reuters reported that analysts are closely watching upcoming economic indicators to assess whether weaker growth could prompt Beijing to introduce additional support measures.Nomura expects Beijing to rely more heavily on fiscal measures to support growth rather than monetary easing, Reuters reported. The strength of China's exports could also reduce the need for large-scale monetary stimulus, according to the brokerage.Nanhua Futures said July economic data would be particularly important for determining the policy outlook. Reuters reported that signs of broad-based weakness could encourage Beijing to announce fresh stimulus measures around the end of September.Bank lending also appeared to have weakened sharply. A Reuters poll showed that new yuan loans issued by Chinese banks were expected to have fallen to about 45 billion yuan ($6.67 billion) in July, down sharply from 1.61 trillion yuan in June.Meanwhile, investors appeared to be rotating towards traditional sectors after the recent sell-off in artificial intelligence-related stocks. The CSI 300 Consumer Staples Index jumped nearly 3%, while an index tracking Chinese real estate stocks gained about 2%.Technology stocks, by contrast, came under heavy pressure. The CSI 300 Telecommunication Services Index plunged 5%, while the CSI AI Index fell nearly 4% and the STAR Chip Index lost 2%.In Hong Kong, consumer and property stocks helped lift the broader market, while chipmakers and AI-related shares declined.The contrasting performance highlighted a shift in investor sentiment as markets weighed China's weak domestic price pressures against expectations for targeted fiscal support and continued strength in exports, Reuters reported.