HONG KONG, Dec 16 (Reuters) - Hong Kong shares dropped to four-week lows on Monday, dragged lower by weakness in mainland stocks, as a private survey showed that growth in China’s manufacturing activity slipped to a three-month low in December.
China’s flash Markit/HSBC Purchasing Managers’ Index (PMI) eased to a 3-month low of 50.5 in December from November’s final reading of 50.8, as reduced output offset a pick-up in new orders.
The Hang Seng Index closed down 0.6 percent at 23,114.66 points, while the China Enterprises Index of the top Chinese listings in Hong Kong dropped 0.9 percent. Both fell to their lowest close since Nov. 15.
Shares in electricity supplier Power Assets Holdings Ltd rose 1.2 percent after the company said it planned to spin off its Hong Kong business on the main board in Hong Kong at a market valuation of between HK$48 billion and HK$63.4 billion ($6.19 billion to $8.18 billion).