Hong Kong stocks rebound on Wall St gains, China PMI expected to improve
  • October 10, 2023
  • Team Hongkong Journalist
  • 0

On the final trading day of September, Hong Kong shares recovered, after overnight advances on Wall Street as a result of a decline in U.S. Treasury yields from multi-year highs.

Positive expectations for the September manufacturing purchasing managers’ index (PMI) data, which will be revealed on Saturday, also contributed to the increase.

Markets on the mainland are closed for a week in observance of National Day and will open on October 9.

The Hang Seng China Enterprises Index increased 2.63%, and the Hang Seng Index in Hong Kong increased 2.51%.

Technology behemoths listed in Hong Kong increased by more than 3%. The P/E ratio for Hong Kong stocks has lately dropped to less than ten times. Thus, today is more of a technical recovery propelled by the external U.S. market, according to First Shanghai Securities’ chief strategist Linus Yip.

As rising interest rates and China’s economic issues persisted, the Hang Seng Index dropped to a new low in 2023 on Thursday. For the month, the benchmark decreased by 3%.

The troubled real estate behemoth China Evergrande Group revealed that its founder is under investigation for alleged “illegal crimes,” which has creditors worried about the group’s future.

Since September 28, the Evergrande Group and its subsidiaries have ceased share trading in Hong Kong. China’s economy does, however, appear to be improving. The official PMI for China for September was predicted by Ting Lu, chief China economist at Nomura, to rise from 49.9 to 50.2.

He stated, “We are witnessing rising signals of stabilising growth in September since additional high-frequency data has been revealed recently.

The Wall Street Journal reported on Thursday that the United States and China are in geopolitical talks over Chinese Vice Premier He Lifeng’s potential visit to Washington, which might open the door for Chinese President Xi Jinping to make a trip to the United States.

After Reuters reported that the Chinese manufacturer of electric vehicles is looking for a partnership with Mercedes-Benz in which the German automaker would invest in Nio in exchange for technology, Nio Inc. shares in Hong Kong increased by 9%.

- Published By Team Hongkong Journalist

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