Hong Kong stocks decline as China's $1.4 trillion stimulus plan falls short

Hong Kong stocks fell 1.5% on Monday after China's $1.4 trillion stimulus package failed to meet investor expectations. The plan focused on restructuring local government debt but lacked measures to boost consumer spending. Mainland China's CSI 300 index rose 0.7%, benefiting from increased retail participation and new lending facilities. However, the Hang Seng index saw a decline as traders sold off Chinese equity positions, indicating skepticism about the stimulus's impact. The Chinese central bank set the renminbi at its lowest level in a year, reflecting concerns over investment outflows. Commodity prices, including iron ore and copper, also dropped amid expectations of lower demand due to ongoing issues in China's property market.