Hang Seng makes gains as HSBC reveals better factory results

<p>The Hang Seng has advanced on HSBC’s buoying PMI reading for November.</p>

The Hang Seng in Hong Kong has gained ground in trading today (November 22nd) on news the Chinese manufacturing sector may be making important progress in terms of growth.

According to HSBC's purchasing managers' index (PMI) the world's number two economy's factory output in November rose to 50.4 from 49.5 in October.

PMIs work in such a way that any reading higher than 50 indicates expansion and therefore this latest report puts the industry back in the black after 13 long months of being stuck in recession.

The index – which is compiled by Markit and released by the bank – is a closely-monitored barometer of the health of the economy and suggests Chinese growth is making vital headway after seven straight quarters of sluggishness.

At 08:26 GMT, the Hang Seng rose by more than one per cent to an index value of 21743.2 points, while the Shanghai SSE Composite on the mainland shrank by 0.7 per cent to 2015.6 points.

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