China stocks hit 7-yr high despite weak factory activity; Hong Kong also up

April 23, 2015 4:44 AM

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SHANGHAI, April 23 (Reuters) - China stocks advanced to fresh seven-year highs on Thursday as weaker-than-expected factory activity data reinforced expectations that Beijing will roll out more stimulus measures and keep the financial system flush with cash.

The flash HSBC/Markit Purchasing Managers' Index (PMI) showed that China's factory activity in April contracted at its fastest pace in a year, suggesting that economic conditions are still deteriorating.