Shares in Asia focused companies dip as Chinese inflation soars
Shares in London listed companies with Asia focused businesses dropped today after Chinese government data showed outbreaks of Covid and the war in Ukraine had caused inflation in China to soar.
The dips come after figures from China’s National Bureau of Statistics (NBS) showed factory gate prices are up 8.3 per cent compared to last year.
At the same time, the NBS figures showed prices paid by consumers had increased by 1.5 per cent compared to March last year.
The figures caused shares in Hong Kong focused insurer Prudential to drop 3.36 per cent, and saw shares in London listed investment trust Fidelity China Special Situations plummet by 3.59 per cent.
Shares in Baillie Gifford’s £20bn Scottish Mortgage Investment Trust, which owns significant stakes in Tencent and Alibaba, also dropped 2.4 per cent on publication of the Chinese government figures.
The drops come amid warnings that the war in Ukraine and the spread of Covid-19 could increase pressure on supply chains and cause food prices to soar.