Hong Kong Stocks rose over 2% on Wednesday after the key politburo meeting came out with some positive stimulus to boost investor's hope for a revival of demand and market reforms.
The meeting marked the first mention of counter-cyclic adjustments since July 2023, all to boost consumption, as the country's leaders emphasized.
The appointment of Li Ming, a law enforcement veteran, as the new vice chairman of the China Securities Regulatory Commission adds to the government's momentum towards a reviving economy.
The Hang Seng Index rose by 2.01%, or 341.69 points, to close Wednesday's session at 17,344.60. The Hang Seng China Enterprises Index rose by 2.01%, or 120.47 points, to close at 6,107.16.
According to data from the National Bureau of Statistics released Wednesday, China's manufacturing purchasing manager's index contracted for the third straight month in July, sliding marginally to 49.4% from 49.5% in June.
The China Composite PMI, which combines activities in the manufacturing and non-manufacturing sectors, declined 0.3 percentage points to 50.2%, indicating the fourth consecutive month of decline in China's business sector.
In corporate news, Black Sesame International Holding (HKG:2533) launched its initial public offering in Hong Kong seeking to raise as much as HK$1.12 billion. The SoC-based intelligent vehicle solution provider is offering 37,000,000 shares at HK$28.0 to HK$30.30 apiece. The issuer expects to determine its offer price on Aug. 6 and disclose the allocations on Aug. 7. It will then start trading on the Hong Kong bourse on Aug. 8.
Chinese autonomous driving technology company WeRide filed for an initial public offering in the US, according to a prospectus on the US Securities and Exchange Commission. The number of shares to be offered and their price were not disclosed in the July 26 filing.
Huaneng Power International's (HKG:0902, SHA:600011) attributable profit rose to 7.77 billion yuan in the first half from 6.49 billion yuan in the year-ago period. Earnings per share at the power producer increased to 0.40 yuan from 0.32 yuan in the previous year. The company's shares were down nearly 6% on Wednesday's close.
EC Healthcare (HKG:2138) recorded a loss attributable to shareholders of HK$18.9 million for the year ended March 31, against a profit of HK$69.7 million in the previous year. Loss per share was HK$0.016, reversing earnings per share of HK$0.059 a year ago. The company's shares rose by 5% on Wednesday's close.
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