Inflation Numbers Hit Stocks in China

Higher-than-expected inflation data from China spurred a sharp late-day selloff in Hong Kong, while stocks in Shanghai tumbled to a 12-month low.

The Hang Seng fell 23 points, or 0.1%, to 23,878.35, after gaining as much as 119 points earlier. China's Shanghai Composite Index lost 57 points, or 1.7%, to 3291.60.

"Hong Kong is not really holding up," says Andrew To, head of sales and research for Tai Fook Securities in Hong Kong. "Over the next few days there will be further offloading and profit-taking until the Hang Seng goes to 23,000 points or below. Then that could stimulate some long-term funds to rebuild their portfolios here." ...