China’s stock market reopens with a bang on economic data, Hang Seng Index subdued on virus concerns

China’s stock market reopens with a bang on economic data, Hang Seng Index subdued on virus concerns



calendar: A woman wearing a protective mask walks past an electronic board displaying stock indexes in markets around the region. Photo: Bloomberg


A woman wearing a protective mask walks past an electronic board displaying stock indexes in markets around the region. Photo: Bloomberg

China’s stock market reopened with a bang after an eight-day holiday as a private economic report signaled a sustained recovery in the nation’s services industry. Hong Kong stocks were rangebound amid concerns about new measures to contain local coronavirus cases.

The CSI300 index, which tracks the performances on Shanghai and Shenzhen bourses, gained as much as 1.9 per cent to 4,672.41 from the level on September 30. The gauge has risen by more than 14 per cent so far this year. The Hang Seng Index was little changed at 24,225.03, and was on course for a weekly gain.

The China Caixin/Markit services PMI index rose to 54.8 in September versus 54 in the preceding month, today’s report showed. The Composite PMI index, however, eased to 54.5 versus 55.1 previously. Readings above 50 indicate expansion.

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This was above the median expectation in a Bloomberg survey for a reading of 54.3, with the rate of expansion the sharpest for three months and among the quickest recorded over the past decade.

Zhejiang Sanhua Intelligent Controls, which manufactures appliance parts, led gains among CSI300 members with a 9.2 per cent rally.

Shares of Beijing Yanjing Brewery, one of China’s largest breweries and a subsidiary of municipal government-backed conglomerate Beijing Enterprises Holdings, fell as much as 5 per cent to 8.01 yuan. The company said its chairman had been detained by mainland Chinese authorities to assist an official investigation, in a filing to the Shenzhen exchange on Thursday night.

In Hong Kong, health officials warned of an alarming rebound in Covid-19 infections, saying the number of local cases had more than quadrupled to 35 this week as of Thursday, from just eight the week before, while untraceable infections jumped from three to 12 in the same period.

In Hong Kong, AAC Technologies led losses with a 1.5 per cent decline. Hong Kong-listed Beijing Enterprises declined 0.2 per cent to HK$23.35.

Shanghai-based biopharmaceutical company Everest Medicines, which produces late clinical-stage medication for oncology, immunology, cardio-renal disease, and infectious diseases, jumped 28 per cent in its trading debut at HK$70.55, compared with its initial public offering price of HK$55.

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This article originally appeared on the South China Morning Post (www.scmp.com), the leading news media reporting on China and Asia.

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