China Daily Global Edition (USA)
Hshares rise on manufacturing data surprise
Chinese mainland stocks listed inHongKong rallied the most in three weeks after a private manufacturing index unexpectedly jumped to the highest level since February last year.
The Hang Seng China Enterprises Index closed up 1.9 percent, its biggest advance since July 11, with China Longyuan Power Group Corp and a pair of automakers leading gains. Shares traded on the mainland extended last week’s decline, with the ChiNext index of smaller companies retreating 1.1 percent on continuing concern over the impact of plans to crack down on wealth-management products.
A factory gauge from Caixin Media and Markit Economics jumped to 50.6 in July from 48.6 a month earlier, data showed on Monday, while an official measure dropped to 49.9. The ChiNext measure retreated last week amid reports regulators are planning to limit WMP investments in equities.
“If Caixin’s data is so strong, itmeansthat the realeconomy is improving,” said Steven Leung, executive director at UOB Kay Hian (Hong Kong) Ltd.
The Hang Seng China Enterprises Index rose to 9,129.20, while the Shanghai Composite Index retreated 0.9 percent to 2,953.39. Hong Kong-traded Chinese stocks have been outperforming their Shanghai peers in recent weeks, narrowing the price difference to a 10-month low. TheHang Seng China AH Premium index, which measures the gap, sank 1.7 percent on Monday, the most in a month.
The China Banking Regulatory Commission is drafting rules governing wealth management products (WMPs) to prevent risks in the sector, the official Xinhua News Agency reported last week, citing the regulator.
The CBRC is said to be planning a crackdown on the $3.5 trillionWMPmarket, with initial draft rules forbidding cash from “mass market” products to be invested in locally listed shares, a person with direct knowledge of the matter said last week.
China Longyuan, which designs and runs wind farms, jumped 5.5 percent to lead the H share index. Great Wall Motor Co, a manufacturer of pickups and sport-utility vehicles, advanced 4.7 percent, and vehicle and partsmaker Dongfeng Motor Group Co rose 3.9 percent. China International Capital Corp analysts led by Feng Wei wrote in a note that the country’s auto stocks could climb by 20 percent by September as a sales recovery continues.