China Business Activities Growth Slowed Ahead of Lunar New Year Holidays

Li Chen
27 Jan, 2025
Hong Kong

Financial markets in China and Hong Kong advanced after the top financial regulator announced additional measures to shore up faltering stock market confidence. 

The Hang Seng index increased 1%, and the mainland-focused CSI 300 index advanced a fraction. 

The China Securities Regulatory Commission announced measures to facilitate investment in index-linked funds and also expanded its list of insurance companies required to invest a portion of premiums on new policies in onshore stock markets. 

Twin moves by the regulatory agency are part of a plan to arrest the further decline in financial markets after five years of weakness and increase the attractiveness of Chinese stocks to foreign investors. 

Market sentiment was cautious after the latest official survey showed a slowdown in growth in activities in the manufacturing and services sector in January. 

The official Manufacturing Purchasing Managers' Index decreased to 49.1 from 50.1 in December, indicating a slowdown ahead of the Lunar New Year holidays.

China's official non-manufacturing Purchasing Managers' Index fell to 50.2 in January from a nine-month high of 52.2 in December. 

Financial markets in China will remain closed from January 28 to February 4, and in Hong Kong, they will close from midday January 28 to January 31. 

The National Bureau of Statistics on Monday released two surveys indicating the updates in business activities.

 

China Stock Movers 

The Hang Seng index increased 1% to 20,257.34, and the CSI 300 index advanced 0.1% to 3,836.30. 

Beijing Haibo Sichuang Technology soared more than 230% to 61.43 yuan in Shanghai after the electrochemical storage company completed its initial public offering. 

The storage company sold 44.4 million shares and raised 783 million yuan. 

Yalian Machinery surged 180% to 54.14 yuan in Shenzhen after the wood-based panel machinery company priced its share at 19.08 yuan in an initial public offering. 

Yalian sold 21.8 million shares and raised 416 million yuan and listed its shares on the Shenzhen Stock Exchange.