Hong Kong Stock Losses Melt Away Despite Weak Data

Hong Kong stocks crawled back from early losses Tuesday morning despite data showing China's producer prices falling sharply and consumer-price inflation at its lowest in five years. Helping the market were reports that the People's Bank of China had pumped 80 billion yuan ($13 billion) into the financial system via reverse repurchase agreements. The Hang Seng Index was flat after opening 0.2% lower. Many of the top-weighted stocks advanced, with China Mobile Ltd. and Tencent Holdings Ltd. up 0.7% and 0.3%, respectively. However, HSBC Holdings PLC declined 1.7%, extending losses after a report over the weekend on alleged tax evasion and money laundering at its Swiss unit. Meanwhile, mainland Chinese banks traded mixed, as Agricultural Bank of China Ltd. dropped 0.3%, both Industrial & Commercial Bank of China Ltd. and China Construction Bank Corp. slipped 0.2%, while Bank of Communications Co. advanced 0.8%, Bank of China Ltd. rose 0.5%, and China Minsheng Banking Corp. added 0.6%. Among other movers, Hong Kong developer New World Development Co. tumbled 3.4%, after issuing a profit warning for the second half of last year. However, snack-food maker Want Want China Holdings Ltd. recovered 1.8% after previous heavy losses. Over on the Chinese mainland, the Shanghai Composite Index also turned higher after brief opening declines, rising 0.7%.