Hong Kong Stocks Retreat to Start Week in Red Following Weak Manufacturing, Corporate Results

Hong Kong stocks retreated on Monday after last week's winning streak following an official report stating contraction in China's manufacturing for a fourth consecutive month, while multiple companies reported disappointing financial results.

The Hang Seng Index fell 1.65%, or 297.10 points, to close Monday's session at 17,691.97. The Hang Seng China Enterprises Index fell 1.89%, or 119.53 points, to close at 6,211.61.

China's manufacturing activity fell to its lowest in six months in August, dropping to 49.1 from the prior month's 49.4, according to data from the National Bureau of Statistics, indicating a slowdown in demand and production activities.

However, non-manufacturing activity in China improved slightly in August, with the non-manufacturing business activity index rising to 50.3 from the prior month's 50.2.

In corporate news, Shanghai Junshi Biosciences Co (HKG:1877, SHA:688180) reported a loss attributable to shareholders of 645.7 million yuan for the period ended June 30, about 35% decline compared with the 996.4 billion yuan in the previous year. The company's shares closed nearly 9% lower on Monday.

Li Auto (HKG:2015, SGX:NIO) shares fell nearly 5% on Monday's close despite delivering 48,122 vehicles in August, a jump of almost 37.8% from the prior-year period.

China Communications Construction (HKG:1800, SHA:601800) posted first-half net profit attributable to shareholders of 11.40 billion yuan, down 0.59% from 11.47 billion yuan the previous year. The company's shares closed nearly 8% lower on Monday.