U.S.-listed shares of Chinese companies traded mixed Friday after weak inflation data raised traders’ hopes that the government will take action to bolster growth.
American depositary receipts of e-commerce giant
Alibaba
(ticker: BABA) slipped 0.4% in premarket trading,
Baidu
(BIDU) climbed 1.5%, and
JD.com
(JD) declined 0.7%. Hong Kong’s Hang Seng Index (HSI) finished with a gain of 0.5%.
China’s producer-price inflation was surprisingly weak in May, with prices falling 4.6% from a year earlier, the weakest reading since 2016. Consumer-price inflation was just 0.2%.
The figures underscore how hard it has been for China, the world’s second-biggest economy, to bounce back from the Covid-19 lockdowns that held it back until late last year. That has lifted hopes that the government and central bank might step in to give an extra push to revive growth.
The price data raise concerns that China could fall into deflation, or consistently falling prices, if the expansion doesn’t strengthen soon. Exports also fell in May and surveys showed manufacturing continues to shrink.
The Chinese government has set a goal of 5% economic growth this year after a disappointing performance in 2022.
Write to Brian Swint at [email protected]
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