Hong Kong Market ends marginally higher

1 Aug 2022 , 05:35 PM

Hong Kong share market finished session marginally higher on Monday, 01 August 2022, as disappointing Chinese economic data and concerns over a possible flare-up in Sino-U.S. tension kept investors wary. Delisting risks for US-listed Chinese firms added to market jitters. At closing bell, the benchmark Hang Seng Index rose marginal 9.33 points, or 0.05%, to 20,165.84. The Hang Seng China Enterprises Index was down 8.77 points, or 0.13%, to 6,876.71. Market managed to close above boundary line on Monday, after the Chinas securities regulator chief said stable capital market operations is a top priority, adding the regulator would aim to maintain consistent policy expectations. However, market gains capped after data showed that Chinas factory activity actually contracted in July as fresh virus flare-ups weighed on demand. The official National Bureau of Statistics survey showed manufacturing purchasing managers Index (PMI) fell to 49.0 in July, as Chinas strict COVID restrictions, prolonged crisis in the property sector and falling global demand slowed production in the country. Another private survey also showed manufacturing expanded at a slower pace last month, as fresh virus flare-ups and a darkening global outlook weighed on demand. The market focus this week would be on U.S. House of Representatives Speaker Nancy Pelosis Asian tour, and a possible stop in Taiwan that could send a chill through already cool relations between Beijing and Washington. Chinas President Xi Jinping warned his U.S. counterpart Joe Biden last week that Washington should abide by the one-China principle and those who play with fire will perish by it. Shares of property developers were down after data showed home sales extended a plunge amid a widening mortgage boycott, while China Evergrande Group failed to unveil a preliminary restructuring plan by the end of July as it had long promised. Investor mood also soured on signs that Beijing is prioritizing the completion of homes for social stability over developers financial health. Shares of Alibaba Group retreated almost 4% after it has been added to a list of foreign companies with alleged auditing violations in the US, which could lead to the tech giants removal from the NYSE.Powered by Capital Market – Live News