Hong Kong Stocks Rally as China Manufacturing PMI Beats Expectations
Hong Kong Stocks Bounce Back Following Positive PMI Data
Hong Kong stocks rallied as the latest China PMI report revealed significant expansion in the manufacturing sector, with the Hang Seng Index rising 0.2% to 20,418.85. This uptick comes after a consistent downtrend, with the index down by 3.4% for the month. The positive momentum was further underscored by the Hang Seng Tech Index, which added 0.5%.
Key Economic Insights from the National Bureau of Statistics
According to the National Bureau of Statistics, China’s official manufacturing purchasing managers’ index (PMI) increased to 50.1 in October, marking a change from the previous month’s score of 49.8. This rise outstrips economists' expectations, indicating growth as a reading above 50 signifies expansion.
Banking Sector Leads the Charge
- Industrial and Commercial Bank of China (ICBC) saw its shares increase by 1.7%, reaching HK$4.71.
- China Construction Bank followed suit with a 1.2% gain, landing at HK$6.04.
- China Life Insurance surged by 2.3% to 16.74 yuan, with profits skyrocketing 17-fold compared to last year.
These movements signal restoring confidence as monetary and fiscal policies shift in a bid to stimulate the economy further.
Market Responses from New Entrants
- Beijing Biostar Pharmaceuticals surged 43% to HK$22.85 upon debut.
- Wuhan Guide Technology experienced a remarkable 355% increase, reaching 123 yuan.
- Hefei Cobel Advanced Plastics soared 306% to 54.10 yuan.
In contrast, other major Asia-Pacific markets exhibited declines, with Japan’s Nikkei 225 falling 0.5% and South Korea’s Kospi retreating by 1.2%, signaling a mixed international landscape.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.