* HK->Shanghai Connect daily quota used 5%, Shanghai->HK daily quota used 1.1%
* FTSE China A50 -0.4%
May 31 (Reuters) – Hong Kong stocks inched up on Monday to post monthly gains, as China’s three-child policy powered birth- and fertility-related stocks.
** The Hang Seng index rose 0.1% to 29,151.80, while the China Enterprises Index gained 0.9% to 10,889.12 points.
** Leading the gains, the Hang Seng healthcare index jumped 4.1%, while Hang Seng IT index rose 3.6%.
** Shares in birth- and fertility-related companies listed on the mainland and in Hong Kong surged after China said married couples may have up to three children, a major policy shift from the existing limit of two after recent data showed a dramatic decline in births in the world’s most populous country.
** Suzhou Basecare Medical Corp Ltd, Jinxin Fertility Group Ltd, Aidigong Maternal & Child Health Ltd and Goodbaby International Holdings Ltd surged between 15.1% and 30.9%.
** Shares of Chinese food delivery giant Meituan closed 10.9% higher, after the Tencent-backed company on Friday reported better-than-expected quarterly revenue.
** For the month, HSI gained 2.3%, while HSCE firmed 0.6%, as inflation fears decreased both at home and abroad.
** China’s recent soft data also assuaged policy tightening fears that had weighed on the market.
** China’s factory activity slowed slightly in May as raw materials costs grew at their fastest pace in over a decade, weighing on the output of small and export-oriented firms. (Reporting by Luoyan Liu and Andrew Galbraith; Editing by Devika Syamnath)
