Hong Kong stocks complete biggest monthly gain since early 2023 as manufacturing report brightens China’s growth outlook

The purchasing managers’ index (PMI) of Chinese manufacturing activity beat estimates as it chalked up a second month in expansionary territory

Hong Kong’s market is the best performer among major peers globally this month, and the report is expected to add further impetus

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Screens show stock information outside Exchange Square in Hong Kong, home of the city’s bourse operator, on February 15, 2024. Photo: Sun Yeung

Published: 10:29am, 30 Apr 2024Updated: 4:38pm, 30 Apr 2024

Hong Kong stocks notched up the best monthly performance since January 2023 on optimism that China’s growth has stabilised after an official report indicated that manufacturing activity in April expanded at a faster-than-expected pace.

The Hang Seng Index rose 0.1 per cent to 17,763.03 at the close, taking its gain for April to 7.4 per cent. The Hang Seng Tech Index slipped 0.3 per cent and the Shanghai Composite Index dropped by the same amount.

Hong Kong’s market will be closed for the Labour Day holiday on Wednesday, while China’s onshore stock exchanges are closed the whole week.

Home appliance maker Haier Smart Home surged 7.9 per cent to HK$29.25 after saying that first-quarter profit increased 20 per cent from a year earlier. HSBC Holding rose 2.2 per cent to HK$67 after posting the better-than-estimated result for the first three months. CNOOC advanced 2.7 per cent to HK$20.30, and China Petroleum and Chemical Corp, also known as Sinopec, gained 1.1 per cent to HK$4.72.

The purchasing managers’ index (PMI) of manufacturing activity stood at 50.4 in April, above the reading of 50 that indicates expansion for a second straight month, China’s statistics bureau said on Tuesday. That beat the consensus estimate of a reading of 50.3 compiled by Bloomberg.