China Stocks Steady as Manufacturing Woes Persist Amid Trade Tensions
China's stock market remained stable on Monday, while Hong Kong's fell after a strong week. Manufacturing data revealed ongoing contraction, impacting trade with the U.S. Despite manufacturing struggles, onshore investors showed optimism, with resilient macro data and potential for better-than-feared export performance.
China's stock markets exhibited stability on Monday, with the blue-chip CSI300 Index showing minimal movement. Despite last week's impressive gains, the Hang Seng Index in Hong Kong pulled back by 0.4% amidst ongoing manufacturing contraction highlighted in recent data.
The PMI figures released on Monday revealed a third consecutive month of contraction, albeit at a slower pace, with a rise to 49.7 in June from 49.5 in May. Sectors such as defence and chips showed positive movement, while banking stumbled, erasing part of previous gains.
Analysts from Goldman Sachs note that domestic investors appear slightly more positive regarding China's growth prospects, citing resilient macroeconomic indicators and the potential for exports to perform better than initially expected in the latter half of the year.
(With inputs from agencies.)
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