Hong Kong shares rose 0.22 percent on Thursday, ending a four-session losing streak, but gains were capped by data from China showing manufacturing activity on the mainland contracted in March.
The Hang Seng Index added 44.93 points to 20,901.56 on turnover of HK$49.89 billion ($6.40 billion).
HSBC said its preliminary Purchasing Managers' Index (PMI) fell to 48.1 in March, the fifth month manufacturing activity has contracted, adding to fears over the world's number two economy.
A reading above 50 means expansion, while below 50 suggests contraction.
"From a macro standpoint, Beijing has abandoned its economic growth target of eight percent, which it had maintained for years," Alvin Cheung, associate director at Prudential Brokerage, told Dow Jones Newswires.
"China is now trying to rely more on domestic consumption to stimulate economic growth, but judging from recent results announcements from consumption plays this won't be an easy task."
Earlier this month Chinese leaders acknowledged the economy was easing as they targeted 7.5 percent growth this year, down from 9.2 percent last year and 10.4 percent in 2010.
However, in Hong Kong retail stocks jumped Thursday in anticipation of monetary loosening by Beijing to stimulate the economy.
Chinese retailer Belle International was up 3.2 percent to HK$14.64 and Want Want China advanced 1.6 percent to HK$8.83.
Huaneng Power jumped 4.6 percent to HK$4.51 after Wednesday's 7.5 percent dive in the wake of disappointing 2011 results the day before.
Chinese shares closed 0.10 percent lower. The Shanghai Composite Index, which covers both A and B shares, slipped 2.43 points to 2,375.77 on turnover of 76.9 billion yuan ($12.2 billion).
"The PMI data, coupled with weak economic figures released (previously), show that China's economy may continue to slow in the second quarter," Zhang Yanbin, an analyst at Zheshang Securities, told AFP.
Nonferrous metal stocks led the declines after gains the previous session.
Xiamen Tungsten dropped 5.28 percent to 45.25 yuan and Rising Nonferrous Metals fell 4.48 percent to 65.22 yuan. Aluminium producer Chalco lost 2.77 percent to 7.38 yuan after surging 10 percent the previous session.
News Bureau,
The Hang Seng Index added 44.93 points to 20,901.56 on turnover of HK$49.89 billion ($6.40 billion).
HSBC said its preliminary Purchasing Managers' Index (PMI) fell to 48.1 in March, the fifth month manufacturing activity has contracted, adding to fears over the world's number two economy.
A reading above 50 means expansion, while below 50 suggests contraction.
"From a macro standpoint, Beijing has abandoned its economic growth target of eight percent, which it had maintained for years," Alvin Cheung, associate director at Prudential Brokerage, told Dow Jones Newswires.
"China is now trying to rely more on domestic consumption to stimulate economic growth, but judging from recent results announcements from consumption plays this won't be an easy task."
Earlier this month Chinese leaders acknowledged the economy was easing as they targeted 7.5 percent growth this year, down from 9.2 percent last year and 10.4 percent in 2010.
However, in Hong Kong retail stocks jumped Thursday in anticipation of monetary loosening by Beijing to stimulate the economy.
Chinese retailer Belle International was up 3.2 percent to HK$14.64 and Want Want China advanced 1.6 percent to HK$8.83.
Huaneng Power jumped 4.6 percent to HK$4.51 after Wednesday's 7.5 percent dive in the wake of disappointing 2011 results the day before.
Chinese shares closed 0.10 percent lower. The Shanghai Composite Index, which covers both A and B shares, slipped 2.43 points to 2,375.77 on turnover of 76.9 billion yuan ($12.2 billion).
"The PMI data, coupled with weak economic figures released (previously), show that China's economy may continue to slow in the second quarter," Zhang Yanbin, an analyst at Zheshang Securities, told AFP.
Nonferrous metal stocks led the declines after gains the previous session.
Xiamen Tungsten dropped 5.28 percent to 45.25 yuan and Rising Nonferrous Metals fell 4.48 percent to 65.22 yuan. Aluminium producer Chalco lost 2.77 percent to 7.38 yuan after surging 10 percent the previous session.
News Bureau,
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