AIA, Xiaomi lift Hang Seng Index, offsetting losses due to poor China PMI data
China’s April PMI falls to 49 from 50.5 in March and short of the consensus estimate of 49.7
Hong Kong stocks climbed on Wednesday as positive news from some index heavyweights, including AIA and Xiaomi, offset concerns about weakness in China’s manufacturing sector amid a tariff conflict with the US.
The Hang Seng Index rose 0.5 per cent to 22,119.41, the biggest gain in five days. The Hang Seng Tech Index advanced 1.4 per cent. On the mainland, the CSI 300 Index eased 0.1 per cent and the Shanghai Composite Index lost 0.2 per cent. Onshore markets will be closed for the Labour Day holiday for three days from Thursday to Monday, while Hong Kong will be closed on Thursday and Monday.
Insurance giant AIA climbed 6.5 per cent to HK$58.10 after it reported stellar new business growth in Hong Kong and mainland China. Rival China Life Insurance advanced 1.6 per cent to HK$14.20. Smartphone and electric-car maker Xiaomi rose 5.3 per cent to HK$49.95 after announcing its first open-source artificial intelligence reasoning model.
Alibaba Group Holding rose 2.2 per cent to HK$117.50 on news that its food delivery platform, Ele.me, plans to offer over 10 billion yuan (US$13.8 billion) in “red envelopes” to subsidise customers.
Trimming the gain, China Merchants Bank slumped 4.6 per cent to HK$42.45, ICBC dropped 2.9 per cent HK$5.32 and Bank of China declined 0.5 per cent to HK$4.34 following poor earnings results.
Electric-vehicle makers Nio and Xpeng fell 5.1 per cent and 1 per cent to HK$31.45 and HK$72.85, respectively. On-demand delivery platform Meituan dropped 1.4 per cent to HK$130.30.