China stocks rallied, sending a gauge of Hong Kong-traded shares to the highest level in five weeks, as a bigger-than-estimated improvement in manufacturing industries spurred speculation the economy is stabilizing.
The Hang Seng China Enterprises Index advanced 1.2 percent to 10,115.34 at 10:09 a.m. in Hong Kong, heading for the highest close since April 14, as BYD Co. and Zijin Mining Group Co. advanced. The Shanghai Composite Index of mainland-listed shares climbed 0.6 percent. The yuan rose 0.05 percent in Hong Kong trading to 6.2323 per dollar.
The preliminary purchasing managers index from HSBC Holdings Plc and Markit Economics was at 49.7, exceeding the 48.3 median estimate of analysts surveyed by Bloomberg News and a final reading of 48.1 in April. The figure eases concern that a property slump and slowing investment will drag down the worlds second-largest economy.
Chinas government has announced measures such as tax breaks and faster spending on railways to help achieve a growth goal of about 7.5 percent this year without larger-scale efforts such as a national cut in banks reserve requirements.
Source : Bloomberg