Hong Kong stocks fluctuated as China’s manufacturing growth slowed, overshadowing optimism fueled by U.S. manufacturing expansion and higher casino revenue in Macau.

China Zhongwang Holdings Ltd., a maker of extruded aluminum products, slid 3.7 percent. Li & Fung Ltd., the biggest supplier for retailers including Wal-Mart Stores Inc., gained 4.6 percent. Melco International Development Ltd., controlled by billionaire Stanley Ho’s son Lawrence, advanced 1.1 percent after Portuguese news agency Lusa said Macau’s casino revenue climbed 70 percent last month from a year earlier.

“Investors remain relatively cautious, and there’s no rush to get into the market at the moment,” said Alex Wong, asset management director of Ample Capital Ltd. in Hong Kong. “I quite like Macau-related stocks as the data looks pretty good, and we will likely continue to see revenue growth.”

The Hang Seng Index was little changed at 20,838.67 as of 11:31 a.m. local time, after rising as much as 1 percent and dipping as much as 0.2 percent. The Hang Seng China Enterprises Index, which tracks the so-called H shares of Hong Kong-listed Chinese companies, was also little changed at 11,954.02.

Shares on the gauge are priced at an average 13.8 times estimated earnings, down from 18 times on Nov. 16 when the index closed at its highest level for 2009, according to Bloomberg data. Concern that budget deficits in Europe may derail the global recovery, and speculation China’s government will tighten money supply, have contributed to a 9.2 percent drop in the Hang Seng from its November high.

Chinese Manufacturing Index

China Zhongwang slid 3.8 percent to HK$6.27. Anhui Conch Cement Co., a Chinese cement maker, fell 3.8 percent to HK$24.05.

A Chinese purchasing managers’ index released today by HSBC Holdings Plc and Markit Economics fell to a six-month low of a seasonally adjusted 55.4 from 57 in March. A number above 50 indicates an expansion.

Yanzhou Coal Mining Co., the Chinese energy company that paid more than $3 billion for Australia’s Felix Resources Ltd., fell 2.9 percent to HK$20.30, adding to yesterday’s 6.3 percent slump, as Australia plans to impose the world’s heaviest tax regime on resource companies.

Australia announced the so-called super tax on May 2. The 40 percent tax on resource profits will start from 2012 and raise A$12 billion ($11 billion) in its first two years.

Li & Fung gained 4.6 percent to HK$39.45. Foxconn International Holdings Ltd., the world’s biggest contract maker of mobile-phones, rose 1.6 percent to HK$7.03. The shares were the two biggest gainers on the Hang Seng Index.

Macau Gambling Revenue

Melco advanced 1.1 percent to HK$3.55. SJM Holdings Ltd., the casino operator with the biggest market share in Macau, rose 0.6 percent to HK$5.11. Wynn Macau Ltd., a unit of Wynn Resorts Ltd., climbed 0.7 percent to HK$12.28.

Macau’s casino revenue climbed about 70 percent to more than 14.1 billion patacas ($1.8 billion) in April from the same month in 2009, Lusa reported yesterday, citing data from the casino operators.

Cathay Pacific Airways Ltd., Hong Kong’s biggest carrier, rose 0.3 percent to HK$16.20 after saying its fuel needs are “reasonably” well hedged for the next 12 months.

Futures on the Hang Seng Index decreased 0.1 percent to 20,557. Twenty-three stocks fell on the 43-company benchmark index while 19 rose.

Thanks To : BUSINESSWEEK

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