China Stocks Halt 4-day Losses, Industrial Profits Rebound In April

Li Chen
27 May, 2024
Hong Kong

Stocks in Shanghai and Hong Kong edged higher in Monday's trading after a week of sharp selloffs. 

Benchmark indexes in Shanghai and Hong Kong gained more than 0.3% after profits at industrial companies rose in April, the National Bureau of Statistics reported Monday. 

Profits for industrial companies advanced 4% from the previous month in April, reversing the 3.5% decline in the previous month. 

The government's data weighs heavily on large state-owned companies and has fewer small- and medium-sized private companies. 

The statistical bureau is also scheduled to release the manufacturing sector's May activities on Friday, and economists are anticipating the sector to show positive growth. 

The Hang Seng index has trimmed its gains by more than 5% in the previous week after rallying for more than 20% in the previous six weeks. 

Market sentiment has been cautious in the last five trading sessions on the worry that the inadequate policy response, lack of consumer demand, and inflated home prices are likely to prolong the property market malaise. 

Moreover, fragile economic recovery and weaker-than-expected corporate earnings so far in the earnings season also weighed heavily on market sentiment. 

 

China Stock Movers 

The CSI 300 index increased 0.3% to 3,613.76, and the Hang Seng index added 0.4% to 18,677.42. 

Property developers extended last week's losses on the worry that the government's attempt to improve market liquidity may fall short of expectations. 

Longfor Group edged down 0.1% to HK$13.52, China Vanke fell 1.6% to HK$6.13, and China Resources Land eased 0.2% to HK$30.50. 

Leading technology companies advanced in Monday's trading in the hopes that export revenue growth may overcome domestic market weakness. 

Lenovo Group increased 8.5% to HK$12.02, Xiaomi added 0.6% to HK$18.40, and Semiconductor Manufacturing International Corp increased 5.8% to HK$16.24. 

Alibaba Group advanced 1.1% to HK$78.95, JD.com fell 1.6% to HK$117.70, and Meituan added 1.4% to HK$117.90. 

BYD fell 1.2% to HK$205.40, Li Auto advanced 3.1% to $80.65, Xpeng advanced 1.3% to HK$32.20, and Nio advanced 3.1% to HK$38.35.