Hong Kong stocks fell below the 18,000 mark for the first time in the last two months following worrying Chinese inflation data reflecting tepid domestic demand conditions.

China saw a weaker-than-expected consumer price rise, and continuously falling producer prices for the 20th consecutive month.

The Hang Seng Index fell by 1.31%, or 238.50 points, to close Wednesday's session at 17,937.84. The Hang Seng China Enterprises Index fell by 1.44%, or 92.70 points, to close at 6,359.36.

In corporate news, China Baoli Technologies Holdings (HKG:0164) entered into a second supplemental agreement with the placing agent to extend the completion date of the company's recent share placement to within four business days after July 2. The company's share fell nearly 5% on Wednesday's close.

Meituan (HKG:3690) plans to buy back class B ordinary shares worth up to $2 billion in the open market, the company's shares were down over 1% on Wednesday's close.

Kingbo Strike (HKG:1421) updated its allotment and use of proceeds from the rights issue which had raised net proceeds of around HK$16.0 million for the company, the company shares were down over 1% on Wednesday's close.