HONG KONG: Hong Kong stocks rebounded Monday morning after China’s official manufacturing purchasing managers index rose slightly in May.
The Hang Seng Index rose 0.5%, following a three-day losing streak, while mainland-China-tracking Hang Seng China Enterprises nudged lower by less than 0.1%. On the mainland itself, the Shanghai Composite Index also climbed after two consecutive day of losses, up 1.9%. In Hong Kong, Chinese drug stocks mostly rose, after the central government removed price caps for most medicines starting Monday, in order to allow markets play a larger role. Shanghai Pharmaceuticals Holdings Co. Ltd. rallied 4.1%, and Guangzhou Baiyunshan Pharmaceutical Holdings Company jumped 2.8%. Among market movers, property developer Evergrande Real Estate Group Ltd. climbed 3%, rival China Overseas Land & Investment Ltd. gained 1.8%, while brokerage firms Haitong Securities Co. Ltd and Citic Securities Co. Ltd. both declined 2.6%.
