HONG KONG: Hong Kong and China stocks extended gains on Monday to close their best month since January, as a slew of supportive measures rolled out by the Chinese government boosted sentiment, particularly in the private sector.
Hang Seng Index rose 0.82% and Hang Seng China Enterprises Index jumped 1.33%.
China’s CSI 300 Index gained 0.55%, while the Shanghai Composite Index climbed 0.46%.
Both benchmarks logged their best performance in six months, with Hang Seng surging 6% and China’s CSI 300 jumping 4.5%, repetitively.
Hang Seng Tech Index went up 1.9% and soared 16% this month, marking the strongest month since the reopening rally in November.
The official manufacturing purchasing managers’ index (PMI) inched up to 49.3 in July from 49.0 in June, staying below the 50-point mark that separates expansion from contraction. Acknowledging the weak economy, China has stepped up stimulus measures to boost confidence, though details so far have been sparse.
China’s State Council on Monday issued measures to restore and expand consumption in the automobile, real estate and services sector, aiming to give full play to the “fundamental role” of consumption in economic development.
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