Hong Kong Shares Fall to Near One-Month Low Amid China's Economic Woes; Midea Launches Hong Kong IPO

Hong Kong stocks fell to their lowest level in almost a month reflecting a bearish sentiment driven by weak inflation data in China and a gloomy corporate earnings outlook.

The Hang Seng Index fell 1.42%, or 247.34 points, to close Monday's session at 17,196.96, the lowest level since Aug. 15. The Hang Seng China Enterprises Index fell by 1.68%, or 102.63 points, to 6,002.91.

Citibank has lowered its Hang Seng Index target by 3% citing corporate earnings outlook and weak consumption, according to the South China Morning Post.

China's producer price index (PPI), a key gauge of factory gate prices, fell by 1.8% year-over-year in August, marking the fastest decline in four months. Meanwhile, the consumer price index (CPI), a measure of retail inflation, rose by 0.6% in August, missing analysts' 0.7% forecast.

In corporate news, Midea Group (HKG:0300, SHE:000333) launched its initial public offering in Hong Kong Monday, seeking to raise up to HK$27 billion, or about $3.46 billion, in proceeds from the deal.

The Chinese appliance maker is offering up to 492,135,100 shares expected to be priced between HK$52 and HK$54.80 per share.

Elsewhere, Unity Group Holdings International (HKG:1539) recorded a profit attributable to owners of HK$8.4 million for the year ended March 31, against an attributable loss of HK$25.1 million logged for the corresponding previous fiscal year. The energy-saving company's shares rose nearly 2% on Monday's close.