BEIJING: Chinese stocks trading in Hong Kong climbed to a seven-year high as investors weighed weak manufacturing data against the prospects of more monetary easing.
Great Wall Motor Co. led gains for consumer companies most reliant on economic growth with a 7.3 percent advance in Hong Kong. Dongfang Electric Group Co. jumped 5.1 percent as nuclear-equipment companies climbed in Shanghai after the Xinhua News Agency reported China is expected to start building up to eight reactors this year. The preliminary Purchasing Managers’ Index from HSBC Holdings Plc and Markit Economics was at 49.2, missing the median estimate of 49.6 in a Bloomberg survey.
The Hang Seng China Enterprises Index advanced for a third day, adding 0.8 percent to 14,779.99 at 10:02 a.m. in Hong Kong. The H-shares gauge has rallied 41 percent in the past six months as the government lowered borrowing costs to support the economy. China’s central bank last weekend cut lenders’ reserve-ratio requirements for a second time in 2015 after a report showed the slowest economic growth in six years.
“The PMI figure missed expectations and expectations for further stimulus are still there as a result,” said Gerry Alfonso, a director at Shenwan Hongyuan Group Co.’s international business department in Shanghai. “These types of macro figures can be interpreted in different ways and this will cause volatility.”
The Shanghai Composite Index rose 0.2 percent, after swinging between gains and losses. The gauge has rallied 87 percent in the past six months, the most among benchmark indexes globally. The CSI 300 Index advanced 0.3 percent today, while the Hang Seng Index added 0.9 percent. The Bloomberg China-US Equity Index increased 0.9 percent Wednesday.
