Hong Kong News

Nonpartisan, Noncommercial, unconstrained.
Tuesday, Mar 19, 2024

Hong Kong, China markets rally on upbeat Chinese economic data

Hong Kong, China markets rally on upbeat Chinese economic data

Hang Seng Index gained as much as 2 per cent, but is still on track to end the month with a decline.

Hong Kong and China markets ended higher at the lunch break, as investors focused on better than expected economic data from China’s manufacturing and services industries, while digesting the outcome of the US presidential debate.

The Hang Seng Index gained as much as 2 per cent, before paring gains to 1.2 per cent to 23,549.47. However, the benchmark is on track to end the month with losses.

The CSI300 index that tracks performances on both the Shanghai and Shenzhen markets gained 0.6 per cent to 4,620.92, but is still likely to post a monthly loss.

Both China’s official manufacturing and non-manufacturing indices showed positive economic activity for seven consecutive months, according to data released on Wednesday morning. China’s official manufacturing purchasing managers’ index (PMI) stood at 51.5 in September, above the reading of 51 in August and better than median estimates of 51.3 in a Bloomberg survey. Any reading above 50.0 signifies growth.


Workers assemble walkie-talkies at an electronics company in Xiamei Township, Nan’an, southeast China’s Fujian province. China reported better than expected economic data from its manufacturing and services industries.


The official non-manufacturing PMI, which measures sentiment in the services and construction sectors, stood at 55.9 in September, above the reading of 55.2 for August and median expectations by Bloomberg of a decline to 54.7.

“The strong recovery in the second quarter relieves pressure on credit easing, and China’s monetary policy has shifted from large-scale liquidity injection to more targeted instruments,” said Xiao Chunxu, economist at Moody’s Investors Service in a note.

“Loan support and further repayment extensions to small and medium-sized enterprises help firms stay afloat in the crisis but raise default risk when the grace period ends,” said Xiao.

China’s economic recovery “has picked up pace with supply and both domestic as well as overseas demand improving,” said Stephen Innes, chief global markets strategist at AxiCorp.

“In the near future, however, great uncertainties remain about the overseas pandemic and the US election.”

The first debate between President Donald Trump and Democractic challenger Joe Biden saw them sparring on six topics, including Covid-19, the US economy and “the Trump and Biden records”.

“The extent to which the debate matters for markets is whether ‘undecideds’ are swayed either way. Polls in the comings days could provide more colour on any movement,” said Innes.

In Hong Kong, China Evergrande Group , the nation’s biggest developer by sales, soared as much as 18 per cent to HK$19.46 after it unveiled steps to avert a 130 billion yuan (US$19.1 billion) cash crunch in a late exchange filing on Tuesday.

The company said most investors owning 36.5 per cent in its key unit called Hengda Real Estate have agreed to drop a repayment option in a much-delayed Shenzhen deal, and would maintain their holdings for an undisclosed period of time.

The stock is still down 12.4 per cent for the year, over concerns about its debt load.

Other property developers also rose, with Chinese Resources Land leading gains on the Hang Seng Index with a 6 per cent increase. New World Development rose 3 per cent, while Henderson Land added 2 per cent.

Hong Kong bourse operator HKEX gained 0.4 per cent. Charles Li Xiaojia announced he would bring forward his retirement and step down as the head of Hong Kong Exchanges and Clearing on December 31, 10 months before his contract expires in a surprise announcement on Tuesday.

Li’s right-hand man, Calvin Tai, will take his place on an interim basis from January 1, while the search continues for a permanent replacement.

Shares of Alibaba Group Holding, the world’s largest e-commerce platform and owner of this newspaper, rose by as much as 4 per cent to HK$276.

Alibaba’s cloud computing business is expected to turn profitable within the financial year ending in April 2021, while its Cainiao logistics network is expected to generate positive operating cash flow in the same period, the company’s chief financial officer Maggie Wu said in a webinar for Alibaba investors on Wednesday.

On the CSI300, Shenzhen-based electric carmaker BYD rose 8.9 per cent to lead gains.

Markets in Hong Kong will be closed for the rest of the week for the National Day and Mid-Autumn Festival holidays. While Hong Kong will resume trading on Monday, markets in China will reopen on October 9.

Newsletter

Related Articles

Hong Kong News
0:00
0:00
Close
It's always the people with the dirty hands pointing their fingers
Paper straws found to contain long-lasting and potentially toxic chemicals - study
FTX's Bankman-Fried headed for jail after judge revokes bail
Blackrock gets half a trillion dollar deal to rebuild Ukraine
Steve Jobs' Son Launches Venture Capital Firm With $200 Million For Cancer Treatments
Google reshuffles Assistant unit, lays off some staffers, to 'supercharge' products with A.I.
End of Viagra? FDA approved a gel against erectile dysfunction
UK sanctions Russians judges over dual British national Kara-Murza's trial
US restricts visa-free travel for Hungarian passport holders because of security concerns
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Political leader from South Africa, Julius Malema, led violent racist chants at a massive rally on Saturday
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
'I am not your servant': IndiGo crew member, passenger get into row over airline meal
Singapore Carries Out First Execution of a Woman in Two Decades Amid Capital Punishment Debate
Spanish Citizenship Granted to Iranian chess player who removed hijab
US Senate Republican Mitch McConnell freezes up, leaves press conference
Speaker McCarthy says the United States House of Representatives is getting ready to impeach Joe Biden.
San Francisco car crash
This camera man is a genius
3D ad in front of Burj Khalifa
Next level gaming
BMW driver…
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Unlike illegal imigrants coming by boats - US Citizens Will Need Visa To Travel To Europe in 2024
Musk announces Twitter name and logo change to X.com
The politician and the journalist lost control and started fighting on live broadcast.
The future of sports
Unveiling the Black Hole: The Mysterious Fate of EU's Aid to Ukraine
Farewell to a Music Titan: Tony Bennett, Renowned Jazz and Pop Vocalist, Passes Away at 96
Alarming Behavior Among Florida's Sharks Raises Concerns Over Possible Cocaine Exposure
Transgender Exclusion in Miss Italy Stirs Controversy Amidst Changing Global Beauty Pageant Landscape
Joe Biden admitted, in his own words, that he delivered what he promised in exchange for the $10 million bribe he received from the Ukraine Oil Company.
TikTok Takes On Spotify And Apple, Launches Own Music Service
Global Trend: Using Anti-Fake News Laws as Censorship Tools - A Deep Dive into Tunisia's Scenario
Arresting Putin During South African Visit Would Equate to War Declaration, Asserts President Ramaphosa
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
The Changing Face of Europe: How Mass Migration is Reshaping the Political Landscape
China Urges EU to Clarify Strategic Partnership Amid Trade Tensions
The Last Pour: Anchor Brewing, America's Pioneer Craft Brewer, Closes After 127 Years
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
BBC Anchor Huw Edwards Hospitalized Amid Child Sex Abuse Allegations, Family Confirms
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Distorted Mirror of actual approval ratings: Examining the True Threat to Democracy Beyond the Persona of Putin
40,000 child slaves in Congo are forced to work in cobalt mines so we can drive electric cars.
×