Hong Kong Stocks Rise as Nongfu and SMIC Catalyze Gains from Positive China Data

Hong Kong Stocks Boosted by Optimistic China Data

Hong Kong stocks rose for a third consecutive day after reports showed that China's services sector expanded at the fastest pace in three months, adding fuel to recovery signs in manufacturing activity. Policymakers signaled that Beijing is opening market access to foreign investors, enhancing confidence.

Market Performance Highlights

• The Hang Seng Index advanced 0.2% to 20,617.16 at 9.51 am local time.
• The Tech Index gained 0.4%.
• The CSI 300 Index for benchmark onshore stocks climbed 0.7%.
• The Shanghai Composite Index strengthened 0.5%.

Notably, bottled water producer Nongfu Spring surged 5.6% to HK$32.05, and SMIC, China’s largest chipmaker, jumped 4.3% to HK$26.95. Additionally, several property developers rallied, with China Overseas Land and Investments gaining 3.4% and New World Development rising 3.1%.

Positive Economic Signals

Premier Li Qiang remarked that China will promote an orderly opening-up of various sectors while welcoming foreign capital, according to state-run Xinhua News Agency. This assertion came a day prior to the commencement of the China International Import Expo in Shanghai.

Sector Performance Overview

The Caixin China PMI services index increased to 52 in October from 50.3 in September, indicating growth in retail and tourism sectors following an aggressive stimulus initiative by Beijing in late September. A government report indicated that manufacturing grew last month for the first time since April.

Mixed Results in Other Asian Markets

Elsewhere in Asia, market performances were mixed. Japan’s Nikkei 225 jumped 1.2%, while South Korea’s Kospi fell 0.6% and Australia’s S&P/ASX 200 dropped 0.4%.