No Recovery in HK Shares After China Services PMI

        0231 GMT [Dow Jones] Shares in Hong Kong remain down as HSBC's China services sector PMI falls to 51.4 in April--its first slip in three months. The Hang Seng Index fell 170 points ahead of the release and is unchanged since down 0.8% at 21813.61 around 10.00 a.m. local time (0200 GMT). China's service sector is still expanding and "today's release showed [it] is still a relatively resilient part of the economy but it is not expanding at a fast enough pace to offset the manufacturing slowdown," HSBC says. "We think that the economy will continue on a modest path of expansion over the next few months." Signs of "disinflationary pressures" also increased, HSBC says. (gregor.hunter@wsj.com; Twitter: @gregorhunter)
        (END) Dow Jones Newswires

        May 06, 2014 22:32 ET (02:32 GMT)