China Factory Activity Indexes Ease In April, Banks and Real Estate Developers In Focus

Li Chen
30 Apr, 2025
Hong Kong

Stock market indexes in China and Hong Kong traded in a tight range ahead of Labor Day weekend. 

The Hang Seng index  edged up 0.2%, and the CSI 300 index increased 0.1% as investors reacted to the latest batch of earnings from banks and insurance companies. 

Investors are cautious amid rising uncertainties and a lack of near-term catalysts, as earnings season picked up pace and banks were in focus.  

In addition, China's economy is facing internal headwinds from the protracted property market malaise and faltering consumer confidence, compounded by external headwinds from the rising trade tensions with the U.S. 

AIA reported a strong increase in new insurance business growth, but China Merchants Bank and Bank of China reported weaker-than-expected quarterly results. 

China Vanke traded down after the struggling residential property developer reported a large loss in the first quarter, despite support from the government. 

 

Factory Activities Eased In March After Tariffs Pulled Orders Forward

Market sentiment was dented amid two manufacturing surveys confirming ongoing contraction in activities. 

The composite purchasing managers' index in March eased to 50.2 in April from 51.4 in March, according to the latest report from the National Bureau of Statistics. 

The index tracking factory activities fell to a 16-month low of 49.0, down from 50.5 in March. 

Any reading below 50 indicates contraction in activities, and the decline in April was driven by a high base in the previous month because importers front-loaded orders ahead of the U.S. tariffs. 

The Caixin PMI survey, which has a larger sample of small and export-sensitive businesses, also confirmed an ongoing slowdown in factory activities. 

The factory activities index eased to a three-month low of 50.4 in April from 51.2 in the previous month, according to the report published by S&P Global. 

 

China Indexes and Stocks 

The Hang Seng index edged up 0.2% to 22,051.20, and the mainland-focused CSI 300 index advanced 0.1% to 3,777.83. 

AIA Group Ltd. rose 5.5% to HK $57.80, China Merchants Bank fell 4.2% to HK $42.40, and Bank of China decreased 3.2% to HK $4.26. 

Bank of China said operating revenue in the March quarter increased 2.4% to 164.9 billion yuan, profit fell 2.2% to 58.6 billion yuan, and basic and diluted earnings per share dropped to 0.18 yuan from 0.32 yuan a year ago.  

China Vanke dropped 2.4% to HK $5.31, and the residential real estate developer reported a decline in revenue in the March quarter. 

Revenue fell to 37.99 billion from 61.6 billion, net loss soared to 6.2 billion yuan compared to 362 million, and basic loss per share from continuing operations expanded to 0.5268 yuan from 0.0305 a year ago.