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Hong Kong Stocks gain on first day of 2021

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Capital Market
Last Updated : Jan 04 2021 | 5:50 PM IST
Hong Kong stock market advanced on the first day of 2021 trading, Monday, 04 January 2021, as a survey pointing to a continued recovery in the world's second-largest economy bolstered investor sentiments. However, market gains capped after China's firm opposition to the US government's move to politicise trade issues after the New York Stock Exchange began delisting three Chinese telecom firms that Washington says have military ties.

At closing bell, the benchmark Hang Seng Index added 0.89%, or 241.68 points, to 27,472.81. The Hang Seng China Enterprises Index fell marginal 0.14%, or 15.41 points, to 10,722.99.

Activity in China's factory sector rose in December as the economy sustained its recovery to pre-pandemic levels, a business survey showed on Monday, even as higher costs slowed the pace of expansion. The Caixin/Markit manufacturing purchasing managers' index (PMI), which tracks sentiment among smaller, private firms, fell to 53.0 last month from a decade-high 54.9 in November. A number above 50 indicates an expansion in activity, while a reading below that signals a contraction. The December reading marked the eighth consecutive month of expansion. A separate PMI by an official industry group, the China Federation of Logistics & Purchasing, declined to 51.9 from the previous months 52.1.

Shares of technology companies related to smartphone manufacturing surged. Smartphone maker Xiaomi Corp climbed 6.2% to HK$35.25, while Sunny Optical Technology jumped 4.2% to HK$177.

Shares of China's phone carriers declined following a ban on US investors on owning or trading in blacklisted companies with ties to Chinese military. China Mobile declined 0.8% to HK$43.85 after. China Telecom dropped 2.8% to HK$2.09.

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First Published: Jan 04 2021 | 5:31 PM IST

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