Hong Kong stocks rise as China's 3-child policy boosts health firms

  • 5/31/2021
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* HK->Shanghai Connect daily quota used 5%, Shanghai->HK daily quota used 1.1% * HSI +0.1%, HSCE +0.9%, CSI300 +0.2% * FTSE China A50 -0.4% May 31 (Reuters) - Hong Kong stocks inched up on Monday to post monthly gains, as China’s three-child policy powered birth- and fertility-related stocks. ** The Hang Seng index rose 0.1% to 29,151.80, while the China Enterprises Index gained 0.9% to 10,889.12 points. ** Leading the gains, the Hang Seng healthcare index jumped 4.1%, while Hang Seng IT index rose 3.6%. ** Shares in birth- and fertility-related companies listed on the mainland and in Hong Kong surged after China said married couples may have up to three children, a major policy shift from the existing limit of two after recent data showed a dramatic decline in births in the world’s most populous country. ** Suzhou Basecare Medical Corp Ltd, Jinxin Fertility Group Ltd, Aidigong Maternal & Child Health Ltd and Goodbaby International Holdings Ltd surged between 15.1% and 30.9%. ** Shares of Chinese food delivery giant Meituan closed 10.9% higher, after the Tencent-backed company on Friday reported better-than-expected quarterly revenue. ** For the month, HSI gained 2.3%, while HSCE firmed 0.6%, as inflation fears decreased both at home and abroad. ** China’s recent soft data also assuaged policy tightening fears that had weighed on the market. ** China’s factory activity slowed slightly in May as raw materials costs grew at their fastest pace in over a decade, weighing on the output of small and export-oriented firms. (Reporting by Luoyan Liu and Andrew Galbraith; Editing by Devika Syamnath) Our Standards: The Thomson Reuters Trust Principles.

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