Hong Kong: Stocks end higher after China services activity expands
HONG Kong stocks finished higher on Friday (May 5) after data showed China’s services activity grew for a fourth consecutive month in April, while mainland China shares declined, dragged down by artificial intelligence (AI)-related companies.
China’s blue-chip CSI300 Index ended 0.3 per cent lower, while the Shanghai Composite Index dropped 0.5 per cent.
Hong Kong’s benchmark Hang Seng Index added 0.5 per cent, while the China Enterprises Index climbed 1.2 per cent.
China’s services activity grew in April, a survey showed on Friday, as businesses continued to benefit from a return to pre-pandemic levels of demand and output, although expansion slowed slightly.
“As China’s economic recovery continues, we expect investor sentiment to gradually improve towards China equity,” said Jian Shi Cortesi, investment director for China at GAM Investments. “Admittedly, there are still a number of uncertainties such as US-China tensions and geopolitical concerns.”
Tech giants listed in Hong Kong advanced 1 per cent, with Alibaba Group Holding up 1.2 per cent after Bloomberg News reported that the e-commerce’s international online shopping unit is exploring a US listing.
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In mainland markets, AI-related stocks fell. Communications equipment shares slumped 2.8 per cent, and AI shares dropped 1.8 per cent.
Real estate developers gained 4.1 per cent amid market expectations of more policy support after a survey showed China’s average daily home sales by floor area were down 22 per cent compared with the May Day holiday period before Covid-19.
The Hang Seng Mainland Properties Index rose 3 per cent.
Mainland financials firms gained 1.3 per cent, with banks up 1.3 per cent and brokers rising 1.6 per cent. REUTERS
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