China's Factory Activities Accelerates to a 2-year High, Hang Seng Index Soars

Li Chen
03 Jun, 2024
Hong Kong

Stocks in Shanghai and Hong Kong advanced in Monday's trading after a private survey showed a sustained expansion in general manufacturing activities. 

Benchmark indexes in Shanghai and Hong Kong jumped after the general manufacturing activities index showed expansion for the seventh month in a row and accelerated growth for the fourth consecutive month in May. 

The Caixin China General Manufacturing Purchasing Managers' Index rose to 51.7 in May from 51.4 in April, S&P Global reported Monday. 

The rate of growth was the fastest in 23 months, with firms in the consumer segment reporting sharp growth in output, driven by demand from domestic and foreign customers for new products. 

"Backlogged work meanwhile accumulated for a third month in a row and at the quickest pace since September 2021 amid rising new work inflows," the S&P report highlighted. 

Last week, the official manufacturing survey, which is based on smaller number of companies and relies on large and government controlled companies, unexpectedly contracted to 49.5 in May from 50.4 in April. 

 

China Stock Movers 

The CSI 300 index increased 0.3% to 3,588.99, and the Hang Seng Index jumped 2.5% to 18,530.77. 

In broad recovery, electric vehicle makers, banks, property developers, and general manufacturing companies advanced in Monday's trading. 

Li Auto jumped 5.3% to HK$82.30, BYD gained HK$234.0, and Geely Automobile Holdings advanced 4.6% to $9.92. 

Alibaba Group increased 2.6% to HK$76.85, JD.com traded higher by 2.3% to HK$116.60, and Tencent Holdings jumped 4.4% to HK$376.0. 

HSBC Holdings gained 1.4% to HK$69.50, Bank of China increased 1.6% to HK$3.76, and China Minsheng Banking rose 1% to HK$2.99.