* HSI +0.3 pct, H-shares +0.2 pct, CSI300 +0.1 pct
* Encouraging China flash PMI boosts HK, Shanghai nonplussed
* China medical devices sector rises on more govt support
* Great Wall Motor dips to one-month low after management
(Updates to midday)
By Grace Li
HONG KONG, June 23 Hong Kong shares rose on
Monday after a preliminary survey showed activity in China's
factory sector expanded in June for the first time in six
months, offering new signs the economy is stabilising.
Shares in China ended a choppy morning session barely
changed, however, as a liquidity squeeze resulting from new
initial public offerings (IPOs) is not expected to improve
before the end of the month.
The HSBC/Markit Flash China Manufacturing Purchasing
Managers' Index rose to 50.8 in June from May's final reading of
49.4, beating a Reuters poll forecast of 49.7 and creeping above
the 50-point level that separates growth in activity from
It was the first time since December that the PMI was in
growth territory, and the highest reading since November, when
it was also 50.8.
By midday, the Hang Seng Index was up 0.3 percent at
23,262.39 points. The China Enterprises Index of the top
Chinese listings in Hong Kong added 0.2 percent.
In mainland China, the CSI300 of the leading
Shanghai and Shenzhen A-share listings inched up 0.1 percent,
while the Shanghai Composite Index was flat at 2,027.35
points. Both swung between negative and positive territory in
"The market's focus is still on the IPOs. The impact might
linger for another one or two weeks," said Wang Weijun, an
analyst at Zheshang Securities in Shanghai.
"This week is almost the last trading week in June, so
liquidity risks still exist," Wang added.
The resumption of IPOs in the mainland has prompted
investors to sell some of their existing holdings to raise cash
for the new listings, contributing to the biggest weekly loss in
almost two months for the two onshore indexes last week.
On Monday, two more companies - Yunnan Hongxiang Yixintang
Pharmaceutical and liquor maker Jiangsu King's Luck
Brewery Joint-Stock - started to take subscriptions.
Shares of medical equipment companies were stronger after a
China Industrial Economy News report said the medical devices
sector has been included in the country's strategic emerging
Guangdong Biolight Meditech jumped almost 10
The Nasdaq-style ChiNext Composite Index of
mostly high tech startups listed in Shenzhen advanced 2.2
percent, following Friday's rise of 1.4 percent. The two days of
gains helped recover losses from a 3.3 percent drop on Thursday.
In Hong Kong, Great Wall Motor slid 3.7 percent to
its lowest since May 20, after mainland media reported on its
changes of several management posts during the weekend.
The carmaker's shares are now down more than 30 percent on
the year to date, compared to the 3.7 percent fall on the
H-share index, hit by slowing sales and a delay of the launch of
its new model.
(Editing by Kim Coghill)