China economy latest: Asian stock markets fall as China sees rising inflation | City & Business | Finance

Victoria Scholar, Head of Investment at interactive investor, said: “The Hang Seng shed more than 3 percent while the Shanghai Composite declined almost as much spooked by the prospect of slowing growth as China continues to pursue its dramatic zero-COVID policy as well as rising price levels that are hitting both producers and consumers.

“This has prompted nervousness about the response from People’s Bank of China which has been going against the global grain by focusing on looser monetary policy.

“Rising inflation makes sticking to that path more challenging as food and energy prices push higher.”

So far the central bank has been trying to stimulate growth but rising inflation could reduce what future room it has for further measures such as cutting interest rates.