Chinese Stocks Struggle Amid Weak Consumer Spending

Chinese stocks continued their decline on Monday following data revealing weaker-than-expected consumer spending. The blue-chip CSI300 index and Shanghai Composite both slipped, while Hong Kong's Hang Seng Index also experienced losses. Analysts forecast continued economic slowdown and potential deflation persisting into 2025.

On Monday, Chinese stocks extended their decline as data revealed unexpected weakness in consumer spending, raising hopes for central bank cuts amid a looming policy vacuum.

The blue-chip CSI300 index fell by 0.54% at close, continuing last week's 1% retreat, while the Shanghai Composite index dropped 0.16% to 3,386.33. In Hong Kong, the Hang Seng Index declined by 0.88% to 19,759.49.

November's retail sales showed a mere 3% growth, much lower than October's 4.8% increase and below economists' expectations of 4.6%. Industrial output grew 5.4% year-on-year, consistent with October's figures. Analysts suggest that the economic slowdown will likely prolong into 2025 amidst deflationary pressures.

(With inputs from agencies.)