Hong Kong shares end at three-year high

Shares in Hong Kong hit a more than three-year high and Shanghai also rallied Thursday after an index of manufacturing activity in China hit an 18-month high in June, raising hopes for the world's number two economy. Hong Kong's benchmark Hang Seng Index jumped 0.71 per cent, or 169.63 points, to 24,141.50 -- its highest since April 2011 -- on turnover of HK$86.03 billion (US$11.10 billion). HSBC said the flash reading for its June purchasing managers index of manufacturing activity surged to 52.0 from a final reading of 50.7 in June. The result, the highest since January 2013, suggests a string mini stimulus measures from Beijing is giving the economy a boost after a drawn-out slowdown in growth. Anything above 50 points to growth and a number below suggests contraction in the Asian economic giant and key driver of regional and global growth. Cheung Kong Holdings was unchanged at HK$140.30, HSBC added 0.81 per cent to HK$80.75 and Cathay Pacific Airways climbed 0.55 per cent to HK$14.68 while CNOOC 0.29 per cent higher at HK$13.92. China Mobile rose 1.19 per cent to HK$85.1, insurer Ping An surged 4.04 per cent to HK$64.4 and Tencent added 0.32 per cent to HK$124.7, while ICBC bank was 0.97 per cent higher at HK$5.18. In China the benchmark Shanghai Composite Index jumped 1.28 per cent, or 26.57 points, to 2,105.06 on turnover of 128.7 billion yuan ($20.8 billion). But the Shenzhen Composite Index, which tracks stocks on China's second exchange, slipped 0.15 per cent, or 1.64 points, to 1,101.09 on turnover of 126.5 billion yuan ‘That should improve market confidence and boost cyclical stocks,’ he added. Heavyweight financial stocks rose in Shanghai. Sinolink Securities jumped 5.86 per cent to 21.51 yuan while banking giant ICBC rose 1.16 per cent to 3.48 yuan. Property stocks gained on hopes more cities would loosen policies aimed at limiting housing prices. In Shanghai, Poly Real Estate surged 7.60 per cent to 6.23 yuan while Gemdale rose 1.21 per cent to 9.17 yuan. On the Shenzhen market, technology firms extended losses on profit-taking and worries over first-half earnings. Software developer Beijing TRS Information Technology tumbled 6.96 per cent to 21.40 yuan while healthcare firm Sinocare dropped 4.86 per cent to 33.30 yuan, according to AFP.