China stocks were roughly flat on Thursday after downbeat manufacturing data, with investors calling for more easing measures. Hong Kong stocks were down to their lowest level in a year before edging up.
** China’s blue-chip CSI300 Index and the Shanghai Composite Index both inched up 0.2% by the lunch break. Hong Kong benchmark Hang Seng Index also edged up 0.2%, after touching its lowest level in a year during early trade.
** China’s manufacturing activity contracted for a second straight month in November and at a quicker pace, an official factory survey showed on Thursday.
** The Purchasing Managers’ Index (PMI) data disappointed investors who are awaiting a rebound, boosting the case for near-term fiscal and monetary easing, analysts at Citi said.
** The ongoing economic malaise is reflected in the local stock market, with the key CSI300 Index unable to stage a sustained recovery, said Alvin Tan, head of Asia FX strategy at RBC Capital Markets.
** The CSI300 Index has lost 9.5% so far this year.
** Investor sentiment in Chinese financial assets remains highly negative, Tan said.
** China President Xi Jinping visited Shanghai and learned about the city’s efforts to strengthen its competitiveness as an international financial centre, state media reported on Wednesday.
** Tourism and health care stocks were up 1.2% and 1.0%, respectively.
** Tech giants traded in Hong Kong were down 0.6%.
** China Evergrande Group was up 7%.
(Reporting by Shanghai Newsroom; Editing by Sonia Cheema)
