The Hong Kong Hang Seng has made crucial gains in trading today (December 5th) after a closely-watched purchasing managers' index (PMI) revealed a solid rise in new business in November.
HSBC's PMI revealed the monitor remained above the benchmark of 50 points for the second month in a row, signalling a further improvement in private sector operations.
The PMI advanced from 50.5 in October to 52.2 last month, which is higher than the index's long-run average of 51.1 thanks to an increase in the volume of new business received by private sector firms.
Greater China economic research economist at HSBC Donna Kwok commented: "New product launches and solid demand continue to underpin positive business conditions in Hong Kong, setting the economy on course for further expansion in Q4."
At close of play in Hong Kong this morning, the Hang Seng made impressive gains of more than two per cent to an index value of 22270.9 points.
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