China, HK stocks rise as weak factory data raises stimulus hopes

SHANGHAI: China and Hong Kong stocks rose on Friday towards the end of a bearish quarter, as June factory activity data deepened economic worries and strengthened the case for fresh stimulus.

** China’s blue chip CSI300 Index rose 0.9% by the lunch break, while the Shanghai Composite Index climbed 0.8%. For the quarter though, the indexes are set to drop 4.8%, and 2%, respectively.

** Hong Kong’s Hang Seng Index edged up in morning trading, but is on track to slump more than 7% in the second quarter.

** China’s factory activity declined for a third straight month in June and weakness in other sectors deepened, official surveys showed on Friday, adding pressure for authorities to do more to shore up growth as demand falters at home and abroad.

** China’s factory activity declined for a third straight month in June and weakness in other sectors deepened, official surveys showed on Friday, adding pressure for authorities to do more to shore up growth as demand falters at home and abroad.

** “We expect near-term market volatility to remain high as investors closely monitor the potential for further stimulus measures,” Morgan Stanley said in a note on Friday.

** Lower trading volume this week point to weak sentiment, and “we believe easing step-up, and policy stance clarification, remain key to sentiment revival,” the bank said.

** China’s economy rebounded sharply in the first quarter, but post-COVID recovery is waning as factories and retailers suffer from weak demand at home and abroad.

China stocks fall on weak industrial profit, US weighing new chip export curbs

** “Policy stimulus represents the biggest swing factor for the market” in the second half, UBS said in a note this week, adding the second quarter likely to have marked the trough.

** China’s chipmaking and artificial intelligence stocks, which had corrected over the past week, were little moved on news that the United States and the Netherlands plan to further restrict sales of chipmaking equipment to China.

** Shares of Chinese food delivery giant Meituan fell nearly 2% on its plan to acquire AI firm Light Year.