Hong Kong Market rebounds on solid China data

Hong Kong share market finished session sharply higher on Wednesday, 01 March 2023, as strong China's factory activity data reaffirmed investors' optimism that the Beijing economic measures to stabilize the pandemic-hit economy are beginning to pay off, paving the way for a strong rebound.

The manufacturing sector in China moved back into expansion territory in February, the latest survey from Caixin revealed on Wednesday with a PMI score of 51.6. That's up from 49.2 in January, and it moves above the boom-or-bust line of 50 that separates expansion from contraction. The non-manufacturing PMI also gained in February, to 56.3, well above than the prior month's reading of 54.4. Strength in both manufacturing and non-manufacturing activity saw China's composite PMI jump 56.4 in February - its fastest pace in over three years.

At closing bell, the benchmark Hang Seng Index spurted 833.77 points, or 4.21%, to 20,619.71. The Hang Seng China Enterprises Index surged 332.83 points, or 5.06%, to 6,914.30.

Among blue chips, Tencent Holdings which advanced 7.3% to HK$368.80 and property developer Longfor surged 9.6% to HK$24.55. Search engine giant Baidu jumped 7.6% to HK$145 while Alibaba Group leapt 6.2% to HK$91.90. Electric car maker BYD climbed 6.3% to HK$224.40 while Geely Auto gained 4.3% to HK$10.62.

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