It looks like 2012 has started with a boom for Hong Kong stocks on the very first day of trading this is down to manufacturing expansion in nearby China and India. Various companies have enjoyed a healthy increase in stock prices whilst the Hang Send Index rose 2.4 percent.
This is good news as Hang Seng Index dropped during last year because of various factors including the Euro debt crisis and Chinas financial squeeze. As for the statistics China, according to the Hang Seng China Enterprises Index, also enjoyed an increase of 3 percent. The best way to start the year is with positive figures and this is certainly the case for many companies within Hong Kong and China.
China Mengniu Dairy Co., PetroChina Co and Li & Fung Ltd all enjoyed significant percentage increases to their stock values. These companies each have worldwide market connections something which is key to their success, but whether this booms lasts is yet to be seen. The likes of China Mengniu Dairy suffered a drop of 34 percent last month so the increase is good news if not great news and as the year continues they will be looking to recover.
Reports coming out of China are that efforts to improve consumer spending will be put into action in the coming weeks. The often frantic January sales are one such area in other countries where consumer purchases can be as high as any other time of the year, so it appears that Chinese officials are looking to improve that more so.