Hong Kong stocks jump by most in 3 weeks as Alibaba, Tencent gain on economic data boost

A private report showed growth in China’s manufacturing sector accelerated in May, in contrast with a surprise drop indicated by official data last Friday

UboT Holding, the first debutant on the GEM board in three years, jumped as much as 36 per cent on its first day of trading

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Signage at the Tencent Holdings Ltd. headquarters in Shenzhen, China, on Wednesday, Jan. 17, 2024. Photo: Bloomberg

Published: 10:50am, 3 Jun 2024Updated: 4:45pm, 3 Jun 2024

Hong Kong stocks rose by the most in over three weeks after a private report showed the manufacturing sector in mainland China expanded faster than estimated last month, in contrast with the fall in the official manufacturing purchasing managers’ index reported last week.

The Hang Seng Index jumped 1.8 per cent to 18,403.04 at the close of trade on Monday posting the biggest advance since May 10. The Tech Index soared 2.5 per cent while the Shanghai Composite Index declined 0.3 per cent.

Tencent jumped 3.4 per cent to HK$372, Alibaba appreciated 1.7 per cent to HK$76.90 and JD.com added 2.6 per cent to HK$116.90. EV maker BYD jumped 4.8 per cent to to HK$230.20 and rival Li Auto advanced 5.2 per cent to HK$82.20 after top players reported sales surge last month as promotional campaigns lured consumers.

Caixin manufacturing purchasing managers’ index (PMI) rose to 51.7 last month from 51.4 in April, marking the fourth consecutive month of accelerated growth and the fastest pace in two years, surpassing analysts’ forecasts of 51.6 made in a Bloomberg survey of economists.

That helped ease some concerns about China’s economic recovery, after Friday’s official data release showing Chinese manufacturing activity contracted last month, contrary to analyst expectations. The Caixin survey is believed to be skewed more towards smaller, export-oriented firms than the much broader official gauge.

People walk past signage for Hong Kong Exchanges & Clearing Ltd. (HKEX) displayed at the Exchange Square complex in Central. Photo: Sam Tsang

Ahead of today’s rise, the Hang Seng Index had declined for two straight weeks on profit-booking sales after patchy earnings and an erratic economic recovery rattled investors.

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