Daily Report | Hong Kong stocks down again on slowing growth in mainland China services sector
Mainland China indices eke out small gains
Mainland Chinese and Hong Kong stocks closed flat on Thursday after trading within a narrow range, as a private gauge of mainland services activity indicated the new economic engine grew more slowly last month.
The mainland’s benchmark Shanghai Composite Index swung between minor gains and losses to close 0.22 per cent or 6.57 points higher at 2,997.84. The CSI 300, which tracks large companies listed in Shanghai and Shenzhen, inched up 0.14 per cent or 4.46 points to 3,213.92.
The Shenzhen Composite Index edged up 0.72 per cent to 1,942.54, and the Nasdaq-style ChiNext Index traded flat at 2,224.09.
The services sector is where we need to see robust employment growth
In Hong Kong, stocks stayed in negative territory for a fourth consecutive session, but managed to recover lost ground after a substantially lower opening in the morning. The Hang Seng Index closed 0.37 per cent lower, shedding 76.01 points to 20,449.82. The Hang Seng China Enterprises Index, which comprises mainland companies listed in Hong Kong, fell 0.81 per cent to close at 8,626.73.
Hong Hao, head of research at Bocom International, said investors were unwilling to trade without clear cues from the market.
“[The markets] are trendless today,” he said.
Hong said the release of the Caixin services purchasing managers’ index (PMI) figures on Thursday, which were slightly below expectations, gave investors some reason for hesitation.
