SHANGHAI: China and Hong Kong stocks fell on Friday, with the Hang Seng Index on track for its worst week in two months, as China factory activity data shows the economy remains wobbly.
China’s bluechip CSI300 Index fell 0.9% by the lunch break, while the Shanghai Composite Index lost 0.3%.
Hong Kong’s benchmark Hang Seng Index declined 0.7%, and is poised to lose 3.6% for the week, the biggest weekly loss since mid August.
The Caixin/S&P Global manufacturing purchasing managers’ index (PMI) unexpectedly rose to 50.7 in November from a 49.5 reading in October, data showed on Friday.
But that stands in contrast to the official PMI which fell to 49.4 on Thursday. The 50-point mark separates growth from contraction.
“At face value, the average of the two is consistent with factory activity remaining largely unchanged last month,” Sheana Yue, China economist at Capital Economics wrote in a note.
China, Hong Kong stocks decline, weighed by Meituan’s softer guidance
The data shows China’s economic recovery remains fragile despite a slew of stimulus measures.
Underscoring low risk appetite, China’s newly-launched active equity mutual funds raised just 43.1 million yuan in November, a slump from 693.9 million yuan raised in October, according to data from fund consultancy Z-Ben Advisors.
Most sectors fell in China, led by consumer and healthcare stocks.
The BSE 50 Index, the benchmark of the Beijing Stock Exchange, fell 2.3% and is set to post its first weekly fall in a month as investor fever cools.
In Hong Kong, the Hang Seng Tech Index fell 1.6%, while the mainland property index lost 0.1%.
Comments
Comments are closed for this article.