The CSI 300 Index dropped 1.3 percent on Monday as investors worried about potential US Federal Reserve rate hikes. The decline followed a rise in US inflation data, which increased expectations of a 25 basis point interest rate increase in December.
The Star Market 50 index, which focuses on tech and chip companies, fell 2.3 percent. In Hong Kong, the Hang Seng Index dropped 0.9 percent to 24,094.03. The Hang Seng Tech Index also fell 1.9 percent.
Analysts noted that the probability of the Fed raising interest rates in December now stands at 66 percent. This has led to increased uncertainty in global financial markets, particularly in Asia.
The drop in Chinese stocks reflects broader concerns about global economic conditions. Investors are closely watching US monetary policy as it could impact trade and investment flows.
This follows a pattern of market volatility linked to US inflation trends. The Fed’s potential actions continue to influence investor sentiment across major financial hubs.
