Main­land shares gain in Hong Kong

China Daily (USA) - - BUSINESS -

Chi­nese main­land stocks in Hong Kong rose on Thurs­day, led by fi­nan­cial com­pa­nies, as im­prov­ing man­u­fac­tur­ing data boosted con­fi­dence in the na­tion’s econ­omy. Ma­cao casino op­er­a­tors climbed after gam­bling rev­enue in the city in­creased.

The Hang Seng China En­ter­prises In­dex gained 0.7 per­cent at the close, eras­ing an ear­lier loss of 0.7 per­cent. China Mer­chants Bank Co ral­lied to the high­est level since Novem­ber. The na­tion’s of­fi­cial fac­tory gauge un­ex­pect­edly climbed last month to the high­est level in al­most two years. Galaxy En­ter­tain­ment Group Ltd jumped the most since March after a slump in Ma­cao’s gam­bling rev­enue came to an end in Au­gust. The Shang­hai Com­pos­ite In­dex fell 0.7 per­cent to a three-week low.

The man­u­fac­tur­ing data ex­tended a rally that made the H-share gauge the world’s best per­former in Au­gust. Chi­nese stocks have come un­der pres­sure in re­cent days on con­cern the US Fed­eral Re­serve will raise in­ter­est rates this year, boost­ing bor­row­ing costs and weak­en­ing the yuan. US jobs data due on Fri­day could pro­vide clues as to whether that pol­icy tight­en­ing will come sooner rather than later, while in­vestors are also await­ing the Group of 20 meet­ing in China this week­end.

“The PMI data were pos­i­tive for China’s risky as­sets,” said Tim Con­don, head of Asian re­search at ING Groep NV in Sin­ga­pore. Even so, in­vestors are “cau­tious about a Septem­ber rate hike and to­mor­row’s pay­rolls re­port could push the Fed to fol­low through.”

The Hang Seng China En­ter­prises In­dex rose to 9,606.08. The gauge’s 6.5 per­cent gain last month masked re­cent weak­ness, with the mea­sure of Chi­nese com­pa­nies traded in HongKong ris­ing on only three of the pre­vi­ous 12 days. The Hang Seng In­dex added 0.8 per­cent as HSBC Hold­ings Plc ad­vanced to the high­est level since Jan­uary.

China’s man­u­fac­tur­ing pur­chas­ing man­agers in­dex rose to 50.4 in Au­gust from July’s 49.9, beat­ing the 49.8 me­dian es­ti­mate in a sur­vey of econ­o­mists sur­veyed. A PMI by Caixin Me­dia and Markit Eco­nomics fell to 50 from 50.6 in July.

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