Hong Kong stocks fall as China factory activity contracts before US trade deadline
China’s official PMI manufacturing index contracted for a third straight month in June, despite a truce on US export tariffs
The Hang Seng Index dropped 0.9 per cent to 24,072.28 on Monday, while the Hang Seng Tech Index slipped 0.7 per cent. On the mainland, the Shanghai Composite Index gained 0.6 per cent and the CSI 300 Index added 0.4 per cent.
WeChat operator Tencent fell 2 per cent to HK$503 and e-commerce leader Alibaba Group Holding declined 2.1 per cent to HK$109.80. Electric vehicle maker Li Auto slipped 3.3 per cent to HK$107, while peer BYD dropped 1.4 per cent to HK$122.50. Limiting losses, smart-phone and carmaker Xiaomi advanced 1.7 per cent to HK$59.95.
The Hang Seng Index rose 3.4 per cent in June, adding to a 5.3 per cent rally in May. The city’s financial markets will close on Tuesday for a holiday to mark the 28th anniversary of Hong Kong’s return to Chinese rule.
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China’s official purchasing managers’ index rose to 49.7 in June from 49.5 in May, the statistics bureau said in a report on Monday, remaining in contraction territory for a third straight month. A sub-index tracking new orders rose to 50.2 from 49.8, it added. A reading below 50 indicates a contraction in activity.