Hong Kong stocks fell below 24,000 points on Monday as consumer prices again showed contraction in February, albeit lower than polled by analysts, raising fears of deflation among the investors on top of the growing trade and geopolitical tensions.

The Hang Seng Index fell 1.85%, or 447.81 points, to close at 23,783.49. The Hang Seng China Enterprises Index dropped 2.12%, or 189.02 points, to end at 8,725.01.

China's consumer price index contracted 0.7% year over year in February, the first time the indicator returned to negative territory since January 2024. Analysts polled by Reuters estimated CPI to have contracted 0.5%.

The producer price index continued contracting, this time by 2.2% in February, easing from a 2.3% slide in January and lower than a 2.1% decline forecast by analysts polled by the news agency. The indicator has been falling since September 2022.

On the geopolitical front, China slapped extra tariffs against selected Canadian imports such as rapeseed oil, oil cakes and peas, aquatic products, and pork, effective March 20.

The US Trade Representative will also conduct a probe on China-manufactured "legacy" chip models used for consumer electronics. The hearing could mean more tariffs against China. Semiconductor Manufacturing International, or SMIC (HKG:0981, SHA:688981), fell nearly 5% on Monday.

In corporate news, Chifeng Jilong Gold Mining (HKG:6693, SHA:600988) witnessed a tepid stock market debut as its shares opened flat on their maiden trading in Hong Kong Monday morning. It closed unchanged at HK$13.72.

Wise Ally International's (HKG:9918) shares soared nearly 109% as the company expects an attributable profit of between HK$60 million and HK$80 million for the year 2024, up from HK$1.2 million a year prior.

Tongguan Gold Group (HKG:0340) unit Grand Gallant Investments agreed to purchase Wise Trend Investment from Jumbo China for up to HK$400 million, subject to shareholder approval. Shares of the company jumped nearly 27% on Monday's close.