US May manufacturing PMI hits four-year high, Stock Connect (for Hong Kong) sees net outflow of 6.105 billion yuan on Thursday

Market Commentary

S&P Global's May manufacturing data showed the Manufacturing PMI soaring to 55.3, far exceeding market expectations of 53.8, not only higher than the previous reading of 54.5 but also hitting the highest level in 48 months (4 years). This reflects that production and order-pulling momentum at U.S. factories remain extremely strong. On the other hand, the Services PMI dipped slightly to 50.9, slightly below market expectations of 51.1 (previous reading was 51.0), indicating a slight slowdown in the expansion pace of consumer demand in the service sector, presenting a structural divergence of "strong manufacturing, flat services." The report points out that due to strong concerns among businesses about "future supply chains and prices," they are frantically building safety stocks, leading to input inventories rising to an 11-month high.

Southbound Stock Connect recorded a net outflow of 6.105 billion yuan on Thursday. Among them, $WELLCELL HOLD(02477.HK) saw the largest inflow, reaching 1.241 billion HKD; followed by $SMIC(00981.HK) , with a net inflow amount of 806 million HKD. $TRACKER FUND(02800.HK) recorded the largest net outflow, at 2.475 billion HKD; followed by Alibaba-W(09988.HK), with a net outflow amount of 1.527 billion HKD.

Source: KGI Securities