China shares post best week since Oct. 2011
ReutersHONG KONG--China shares closed out their best week in 15 months, helped by an afternoon surge on Friday that also lifted the Hong Kong market from earlier losses rooted in news an official survey of manufacturing activity in China lagged expectations.
February 2, 2013, 12:05 am TWN
Markets began paring losses after a second, private survey by HSBC showed growth quickening to a two-year high in January. Both markets had started the day weaker after the official purchasing managers index (PMI) eased to 50.4 for January, below forecasts for a nine-month high of 50.9.
The Hang Seng Index closed flat on Friday, eking out a 0.6 percent gain this week. The China Enterprises Index of the top Chinese listings in Hong Kong climbed 0.7 percent on the day and 1.8 percent on the week.
Hong Kong turnover stayed under its average in the last month for a fifth-straight session ahead of the U.S. nonfarm payrolls data later on Friday. Shanghai volume stayed relatively robust, picking up in the afternoon as investors chased gains in the brokerage sector.
In the mainland, the CSI300 of the top Shanghai and Shenzhen A-share listings ended up 2.1 percent on the day and 6.7 percent for the week. The Shanghai Composite Index climbed 1.4 percent on Friday and 5.6 percent this week.
The outperformance of onshore markets over offshore peers this week returned the Hang Seng China A-H Price Index above the 100 level only for the second day since mid-November, suggesting A shares are now trading at a slight premium over H shares.