Market Close: Hang Seng drops on China inflation worries

Hong Kong market fell on Friday after China’s inflation came in at higher-than-expected level, fuelling worries that the government would continue to tighten the monetary policy in a bid the dust off the likely inflationary risks.

Worries over limited liquidity into the onshore market due to the tightening monetary policy dragged China’s benchmark Shanghai Composite Index by 1.78 per cent to close at 2,243.00.

The benchmark Hang Seng Index dipped 90.24 points, or 0.4 per cent, to finish at 23,264.07. Turnover stood at HK$83.24 billion.

via Business feed http://www.scmp.com/business/money/stock-talk/article/1125625/market-close-hang-seng-drops-china-inflation-worries