Hong Kong Stocks Gain Following Encouraging Chinese Manufacturing Data

Hong Kong stocks closed higher on Tuesday after the holiday with encouraging Chinese manufacturing data easing some concerns about the economic outlook.

A better-than-expected expansion in China's manufacturing activity has been pointed at by a private report, referring to Caixin/S&P Global manufacturing purchasing managers' index rise to 51.8 in June from 51.7 in the last month.

The Hang Seng Index gained by 0.29%, or 50.53 points, to close Tuesday's session at 17,769.14. The Hang Seng China Enterprises Index rose by 0.68%, or 43.05 points, to close at 6,374.91.

Hong Kong's retail bank's pre-tax operating profit rose 5% in the first quarter over the year due to increased investment incomes as the classified loan ratio for mainland-related lending expanded, The Standard reported Friday, citing data from the Hong Kong Monetary Authority.

The net interest margin declined by 3 basis points to 1.53% during the quarter. The Standard said that the bad loans ratio stood at 1.04%, which is lower than the previous quarter.

On another front, China will increase the duty-free shopping limit for mainland Chinese visitors to Hong Kong and Macau, Xinhua News Agency reported Friday, citing the commerce ministry. Under the new rules, adult visitors may bring in personal goods with an aggregate value of not more than 12,000 yuan. For ports with duty-free shops, the limit will be raised to 15,000 yuan, the report said.

In corporate news, Trendzon Holdings Group (HKG:1865) reported a loss attributable to owners of SG$12 million for the year ended March 31, compared with a loss of SG$2.1 million in the prior year, the company shares were down 4% on Tuesday's close.

Ascletis Pharma (HKG:1672) directors approved up to a HK$200 million share repurchase plan. Under the scheme, the company will be allowed to buy back up to 101,275,800 shares or 10% of the total shareholding of the company. The company shares rose by 13% on Tuesday's close.

Boill Healthcare Holdings (HKG:1246) reported a loss from continued operation attributable to owners of HK$118.6 million for the fiscal year ended March 31, compared with HK$233.6 million a year earlier, the company's shares were down 7% on Tuesday's close.