China Stocks Reverse Previous Day's Gains Ahead of Factory Activity Data

Li Chen
30 Jul, 2024
Hong Kong

Investors sat on the sidelines ahead of the release of key economic data on Wednesday and the tepid policy response. 

Market sentiment was reversed after indexes soared as much as 2% following the rebound in corporate profits for industrial enterprises in the period between January and June. 

The Hang Seng and the CSI 300 indexes declined around 1% ahead of the release of factory activity surveys. 

The official manufacturing purchasing managers' index is expected to ease to 49.4 in June from 49.5 in May, largely because of weak domestic demand growth. 

The Hang Seng index is set to close down for the second month in a row as investors dial down expectations of market-supportive measures from policymakers. 

 

China FDI Plunged 29% In the First Half 

Foreign direct investment in China dropped 29.1% from a year ago to 498.9 billion yuan in the first six months of the year, according to the ministry of commerce. 

High-tech manufacturing increased 2.4 percentage points to 12.8% of foreign investments; medical equipment and instrument investments soared 87.5%; and professional and technical services investments jumped 43.4%. 

Germany accounted for 18.1% of total foreign investment, followed by Singapore with 10.5%. 

 

China Stock Movers 

The Hang Seng index declined 1.3% to 17,022.25, and the CSI 300 index dropped 0.9% to 3,359.23. 

Tech stocks, electric vehicle makers, and financial stocks led the decline in Hong Kong. 

Tencent Holdings declined 1.4% to HK $353.40, Alibaba Group decreased 0.2% to HK $76.40, and Baidu increased 0.3% to HK $87.05. 

Wuxi Apptec increased 4% to HK $29.85, and the biotech company said net profit declined 20% to 4.2 billion yuan. 

Wuxi Biologics dropped 0.8% to HK $10.48. 

Li Auto decreased 0.3% to HK $73.65, BYD dropped 3.3% to HK $223.60, and Xpeng declined 3.6% to HK $31.30. 

China Mengniu Dairy Company dropped 6.6% to HK $12.60, and Haidilao International dropped 3.3% to HK $12.18.