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Hong Kong stock market
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Tencent, Longfor lead Hong Kong stock rebound as bullish China factory report points to strong economic recovery

  • China’s official manufacturing purchasing managers’ index (PMI) climbed to 52.6 in February from 50.1 the previous month
  • Hong Kong stocks are rebounding from a 9.4 per cent slump in February, their first monthly loss since October

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Hong Kong stocks jumped from the lowest level this year on Wednesday morning. Photo: AFP
Jiaxing Li
Hong Kong stocks surged by the most in almost three months as upbeat factory data pointed to a robust recovery in the Chinese economy. Asian markets gained on back of renewed China optimism.

The Hang Seng Index jumped 4.2 per cent to 20,619.71 at the closing of Wednesday trading, the biggest gain since December 5. The Tech Index surged 6.6 per cent, while the Shanghai Composite Index added 1 per cent.

Among the biggest winners were Tencent Holdings which advanced 7.3 per cent to HK$368.80 and property developer Longfor which surged 9.6 per cent to HK$24.55. Search engine giant Baidu jumped 7.6 per cent to HK$145 while Alibaba Group leapt 6.2 per cent to HK$91.90.

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Electric car maker BYD climbed 6.3 per cent to HK$224.40 while Geely Auto gained 4.3 per cent to HK$10.62 before rival Nio releases a key earnings report that will give investors more clues about electric vehicle (EV) demand in China.

China’s factory activity expanded at its fastest pace in more than a decade in February, with the official manufacturing purchasing managers’ index (PMI) rising to 52.6 from 50.1 the previous month, China’s statistics bureau said on Wednesday. A reading above 50 indicates expansion from the previous month.

04:43

China's slow road to economic recovery after dropping its zero-Covid policies

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The struggling property sector also showed signs of recovery last month as policy measures provided some relief. New home sales by the 100 largest developers climbed 14.9 per cent to 461.6 billion yuan (US$67 billion) from a year earlier, according to research from real estate agency E-House.
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