Hong Kong stocks experienced their most significant rise in over three weeks after a private report indicated that the manufacturing sector in mainland China expanded faster than anticipated last month. This contrasted with the decline in the official manufacturing purchasing managers’ index reported the previous week.
On Monday, the Hang Seng Index surged by 1.8% to close at 18,403.04, marking the largest increase since May 10. The Tech Index soared by 2.5%, while the Shanghai Composite Index fell by 0.3%.
Among notable performers, Tencent saw a 3.4% rise to HK$372, Alibaba increased by 1.7% to HK$76.90, and JD.com gained 2.6% to HK$116.90. Electric vehicle manufacturer BYD jumped by 4.8% to HK$230.20, and competitor Li Auto advanced by 5.2% to HK$82.20. These gains followed reports of a surge in sales last month, attributed to successful promotional campaigns that attracted consumers.
The Caixin manufacturing purchasing managers’ index (PMI) rose to 51.7 in May, up from 51.4 in April. This marked the fourth consecutive month of accelerated growth and the fastest pace in two years, surpassing analysts’ forecasts of 51.6 according to a Bloomberg survey. This data alleviated some concerns regarding China’s economic recovery, especially after the official data released on Friday showed a contraction in Chinese manufacturing activity last month, which was contrary to analyst expectations. The Caixin survey is considered to be more skewed towards smaller, export-oriented firms compared to the broader official gauge.
In new market activity, UboT Holding, a company in the semiconductor industry and the first to debut on the Growth Enterprise Market (GEM) in three years, saw its shares jump 6% from its IPO price to HK$0.53 per share on its first trading day on Monday.
Other major Asian markets also recorded gains. Japan’s Nikkei 225 increased by 1.1%, Australia’s S&P/ASX 200 rose by 0.8%, and South Korea’s Kospi surged by 1.7%.
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