Hong Kong Stocks Pare Gains After PMI Rally - Hong Kong

        0836 GMT [Dow Jones] Hong Kong stocks advance after better than expected PMI data from the Chinese mainland, holding onto gains even as doubts creep in towards the end of the trading session. Some banks express skepticism that the improvement in Chinese manufacturing PMI can be sustained, after the 49.7 print for May beats estimates of 48.3: "May usually delivers a superior PMI figure relative to the other months according to historical records," says Nordea. The bank doesn't expect the index to rise much above 50, noting "Beijing's determined fight against shadow banking has negative spillovers on the industrial sector." The Hang Seng Index closes the day up 0.5% at 22,953.76, the third day higher for the index, though the benchmark encounters resistance after moving above the 23,000 mark. H-shares advance, lifting the Hang Seng China Enterprises Index 1.1% higher to 10,109.57, the highest close since April 14. (gregor.hunter@wsj.com; Twitter: @gregorhunter)
        (END) Dow Jones Newswires

        May 22, 2014 04:36 ET (08:36 GMT)