23 July 2019

HSI rises 0.6% as HSBC China PMI beats expectations

Hong Kong’s benchmark Hang Seng Index (HSI) shot up to a 30-month high Monday after the HSBC China purchasing managers index for November came in at 50.8, the second-highest reading in eight months and above the forecast 50.5. The HSI rose as much as 230 points, or 0.9 percent, to 24,111 before ending 157 points, or 0.6 percent, higher at 24,038 points.

The Hang Seng China Enterprises Index, the main H-share gauge, ended up 0.93 percent to close at 11,548, while the Shanghai Composite Index dipped 0.59 percent to 2,207 points. The Shanghai decline followed news that the China Securities Regulatory Commission said initial public offerings will resume next month after a year-plus freeze. Investors worried that the latest move will divert capital away from A shares.

ChiNext stocks came under huge selling pressure. The NASDAQ-style exchange for high-growth, hi-tech startups tumbled 8.26 percent Monday in what was its largest daily drop. More than 100 stocks fell and stopped trading when they touched the daily trading limit of 10 percent.

But the restart of the IPO process boosted the brokerage sector, with all players posting notable increases during the session. China Galaxy Securities (06881.HK) rose more than 10 percent and rival CITIC Securities (06030.HK) was up just under 10 percent.

Gambling plays rallied after data showed that gaming revenue in Macau jumped 21.3 percent year on year to 30.1 billion MOP (US$3.7 billion) last month thanks to events like the annual Grand Prix luring high-spending visitors.

Meanwhile, CITIC Pacific Ltd (00267.HK) issued a filing saying that the first ship loaded with magnetite concentrate from a project in Western Australia has set sail for China. The counter jumped 8.4 percent and hit a 10-month high before settling 6.9 percent up for the day.

Snacks importer CEC International (00759.HK) continued its upward trend and ended 32 percent higher for the day. Phoenix Healthcare Group (01515.HK), which debuted last Friday, managed to add 14.8 percent during the day, taking the counter to 55 percent above its offering price.

– Contact the writer at [email protected]


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