HK and China stocks fall on lower manufacturing activity
Hong Kong and China sharemarkets fell Thursday after data showed Chinese manufacturing activity has likely slowed sharply this month.
While expected and no surprise, somehow it did surprise given expectations the Chinese growth engine would ever stall.
The Shanghai Composite was down 0.42%, or 0.3% lower, while Hong Kong’s Hang Seng Index was down slightly at 0.1% lower.
China manufacturing activity fell sharply in March, as the rate of booking new orders fell to a four-month low at factories, according to an initial reading of an HSBC survey released Thursday.
Some analysts were predicting the result suggests weaker industrial output though May or even June, with GDP growth likely to slow noticeably in first quarter and remain soft in the second quarter.
GDP growth was expected to slow significantly in any case in the first half of the year given the fall in demand from a battered Eurozone.
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