The Hang Seng Index climbed 0.3 per cent to 20,100.26 at the noon break and the Hang Seng Tech Index retreated 0.4 per cent. On the mainland, the CSI 300 Index and the Shanghai Composite Index both fell 0.6 per cent.
The PMI report could give bullish investors some confidence that China’s stimulus measures would stem a slowdown in growth. The Hang Seng Index is up 18 per cent this year and is set to snap a record streak of four straight years of losses after China unveiled a rescue package to spur growth, including new funding facilities for stock purchases and the lifting of home-buying restrictions. Investors are keeping a close watch on the implementation of stimulus measures after top officials pledged more aggressive policy easing for next year.
“China’s economy is on a weak recovery and the momentum is pretty weak,” said Shen Fanchao, an analyst at Zheshang International. “There’s big pressure on downward revision of earnings forecasts. But on the policy front, more supportive policies will come in the coming year. At this stage, we advise investors exercise caution about the market in the near term.”
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