Hong Kong Stocks Pare Gains to End Week in Red as Business Conditions Worsen; Easou Technology Jumps 29% on Debut

Hong Kong stocks erased Thursday's gains to end the week in red after the region's business conditions deteriorated in May amid soft exports and weak new orders, while investors awaited the release of key US jobs data.

The Hang Seng Index fell by 0.59%, or 109.85 points, to close Friday’s session at 18,366.95. The Hang Seng China Enterprises Index fell by 0.68%, or 44.69 points, to close at 6,510.37.

The headline seasonally adjusted Hong Kong purchasing managers index (PMI) fell to 49.2 in May from 50.6 in April, slipping below the 50-marker that separates growth from contraction, reported S&P Global, citing its monthly survey.

In other economic news, Hong Kong’s private home completions in April dropped 54.8% from the previous month as the market slowdown persisted, The Standard reported Friday, citing data from The Rating and Valuation Department.

In corporate news, Easou Technology Holdings (HKG:2550) closed 29% higher at HK$10.96 on its first trading day on the Hong Kong bourse Friday.

Jiangxi Rimag Group (HKG:2522) managed to book a marginal gain on its market debut in Hong Kong on Friday. It closed 0.27% higher at HK$15.04.

Wuhan Youji Holdings (HKG:2881) launched its initial public offering in Hong Kong Friday, seeking to raise up to HK$155.6 million from the deal. The Chinese toluene derivative products provider is offering up to 18.3 million shares expected to be priced in the range of HK$5.50 to HK$8.50 per share.

Wuhan Youji expects to determine the IPO price on June 14 and disclose allocation results on June 17. Shares will begin trading on the stock exchange on June 18.

Separately, Prosper Construction Holdings (HKG:6816) entered into a non-binding memorandum of understanding to purchase 90% of the issued capital of an unnamed Chinese property management company, the company shares fell over 15% on Friday’s close.