Basic materials stocks surged yesterday after a manufacturing survey suggested Beijing's stimulus package is taking effect and amid expectations of more government measures to revive economic growth.
The mainland's purchasing managers' index rose to 45.3 last month from 41.2 in December, suggesting a bottom in the contraction in manufacturing, the China Federation of Logistics and Purchasing said yesterday.
And Xinhua reported the central government had started investing the second allocation of its 4 trillion yuan (HK$4.54 trillion) economic stimulus package.
Steel, cement, glass and nonferrous metals are among industries to be aided by the stimulus package.
Shares in companies ranging from glassmakers, cement producers and steelmakers to nonferrous producers outpaced the 2.25 per cent gain in the Hang Seng Index.
Glassmaker Xinyi Glass Holdings shot up 24 per cent to close at HK$2.48, while rival China Glass Holdings gained 12.28 per cent to 64 HK cents.
Angang Steel, the mainland's second-biggest steelmaker, jumped 12.6 per cent to close at HK$8.22, and smaller rival Maanshan Iron & Steel advanced 10.65 per cent to HK$2.91.
