Hong Kong: Shares rise, but gains far smaller than in China

[HONG KONG] Hong Kong stocks rose on Monday, taking cues from a surge in Chinese shares, but the gains were capped by Friday's sluggish US market after disappointing US economic data.

China's main indexes jumped nearly 5 per cent, as investors were encouraged by market-friendly commentary in official media, and also took a positive view on PMI data showing growth in China's giant factory sector edged up to a six-month high in May.

But Hong Kong's gain were far smaller, which China Investment Securities (HK) attributed to Friday's fall on Wall Street after data showed the US economy contracted in the first quarter.

The Hang Seng index rose 0.6 per cent, to 27,597.16, while the China Enterprises Index gained 1.4 per cent, to 14,299.45 points.

Most sectors in Hong Kong were firmer, with industrial and and material stocks taking the lead, but consumer services shares lost 0.8 per cent.

Shares in Huatai Securities Co Ltd ended up 5 per cent in their Hong Kong debut on Monday, as investors bet that China's biggest broker by trading volume would continue to benefit from a boom in the country's stock markets.

REUTERS