SHANGHAI: Chinese and Hong Kong stocks fell on Friday, with the Hang Seng Index recording its worst week in over three months, as China’s factory activity data showed the economy remains wobbly.
China’s blue-chip CSI 300 Index closed 0.4% lower and was down 1.6% for the week. The Shanghai Composite Index was flat.
Hong Kong’s benchmark Hang Seng Index fell 1.3%, and lost 4.2% 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.
The data stood in contrast to Thursday’s official PMI, which showed a decline to 49.4. 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.
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 sharp drop from 693.9 million yuan 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, slumped 4%, posting its first weekly fall in a month as investor fever cooled.
In Hong Kong, the Hang Seng Tech Index fell 1.8%, while the mainland property index lost 0.9%.
Comments
Comments are closed.