Hong Kong, mainland stocks inch up on data showing China’s consumption grew at faster clip than expected in June
- Pharmaceuticals rally after China’s plan to curb medicine prices is seen as less tough than feared
- Software-related stocks jump on excitement about approaching open of new tech board
Hong Kong and mainland stocks closed a bit higher, as data showed China’s retail sales grew at a faster clip than expected in June and news indicated that Beijing’s national expansion of a medicine-pricing programme will not be as tough as pharmaceuticals feared.
The Shanghai Composite Index closed up 0.4 per cent on Monday, at 2942.19, while the CSI 300 Index of large stocks traded in Shanghai and Shenzhen ended ahead 0.4 per cent at 3824.19.
In Hong Kong, where pharmaceutical companies were the day’s big winners, the Hang Seng Index closed up 0.29 per cent at 28,554.88, extending gains to a fifth straight day.
CSPC Pharmaceutical jumped 7 per cent to HK$13.46, while Sino Biopharmaceutical rose 5.5 per cent to HK$8.99.
Investors cheered news from China that a plan to keep the lid on drug prices will not be as tough as feared as it is expanded nationwide.
Social media and gaming giant Tencent gained 1.6 per cent, closing at HK$360.8. Insurer AIA gained 0.4 per cent to HK$85.8.