Hong Kong shares set to open higher on robust China PMI

PUBLISHED : Monday, 02 September, 2013, 9:56am
UPDATED : Monday, 02 September, 2013, 9:56am

Hong Kong shares could start the week higher on Monday, after China’s upbeat factory activity data raised hope that a sharp economic slowdown in the world’s second-largest economy may have halted.

China’s factory activity expanded at the fastest pace in more than a year in August with a jump in new orders, official data showed on Sunday.

On Friday, the Hang Seng Index ended up 0.1 per cent at 21,731.37, while the China Enterprises Index of the top Chinese listings in Hong Kong fell 0.3 per cent.

Factors to watch:

China will raise subsidies for cleaner forms of electricity from September 25, the state planning agency said on Friday, in a move that could help thermal power plants meet the country’s tough new air pollution standards.

HSBC will stop offering wealth management products in Bahrain, Jordan and Lebanon as the British lender continues to exit small or insufficiently profitable operations globally as part of a strategic review, the bank said.

Guoco swung to a HK$6.3 bln yearly net profit from a HK$1.3 billion net loss last year.

Chinese conglomerate Fosun has denied Italian press reports it was interested in buying into Italian fashion house Versace, which is mulling the sale of a stake to help fund growth.

Aluminum Corp of China (Chalco), the country’s top aluminium producer, posted a first-half net loss of 623.8 million yuan (HK$783.6 million), hurt by lower prices and oversupply in the world’s top producer and consumer of the metal.

Engineering construction company China Railway Construction Corporation said its first half net profit rose 46.6 per cent at 4.7 billion yuan.

China Railway, which is a leading builder of railways, highways and other big-ticket projects, said its first half net profit jumped 45.9 per cent to 3.5 billion yuan.

China Eastern Airlines, one of China’s top three carriers, said its first half net profit fell 28.2 per cent to 621.9 million yuan.

Liz Milan, head of the London Metal Exchange’s Asia business stepped down this week, Hong Kong Exchanges and Clearing confirmed on Friday, the latest casualty of a clean out by the exchange of former LME management.

Chinese construction equipment maker Sany Heavy Industry reported a 48.6 fall in its first-half earnings.

China’s largest bulk shipper, China COSCO, is confident of turning a profit for the full year of 2013 after reporting a narrower first-half net loss as the global dry bulk market improves in the second half.