China Market rebounds 0.9% | Business Standard News

The Mainland China share market finished session higher on Thursday, 30 September 2021, as investors chased for bargain buying on raising hopes for more policy easing after weaker-than-expected September factory activity data.

At closing bell, the benchmark Shanghai Composite Index advanced 0.9%, or 31.87 points, to 3,568.17. The Shenzhen Composite Index, which tracks stocks on China’s second exchange, rose 2.04%, or 47.90 points, to 2,395.05. The blue-chip CSI300 index gained 0.67%, or 32.45 points, to 4,866.38.

China’s factory activity unexpectedly shrank in September as high raw material prices and power cuts pressured manufacturers in the world’s second-largest economy, while the services sector returned to expansion as COVID-19 outbreaks receded.

Most of sectors advanced, with power-intensive sectors being notable gainers after government stepped up efforts to quell fears of a power shortage, meanwhile property developers shares gained after China’s central bank said financial institutions should maintain the stable and healthy development of the property market and protect consumer rights..

ECONOMIC NEWS: China Caixin Manufacturing Sector Moves Out Of Contraction In September – China manufacturing sector was steady in September, the latest survey from Caixin showed on Thursday with a manufacturing PMI score of 50.0, up from 49.2 in August. It moves out of contraction territory and right onto the line that separates expansion from contraction. The higher headline index figure was partly driven by a renewed upturn in overall sales during September. Though only slight, it was the first time new work had increased for three months. Underlying data suggested this was largely driven by firmer domestic demand, as export sales continued to decline.

A number of companies commented on improved customer numbers. Although production fell for the second month in a row in September, the rate of decline eased to only a marginal pace. Firms indicated that relatively subdued demand and material shortages had weighed on production.

CURRENCY NEWS: China’s yuan was up against the U. S. dollar on Thursday despite weaker mid-point fixing by central bank, as higher demand for the local currency outperformed disappointing economic data. Banks also shored up their yuan positions ahead of an upcoming long holiday and various administrative requirements on the last trading day of the quarter. Prior to market opening, the People’s Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.4854 per dollar, 192 pips or 0.3% weaker than the previous fix of 6.4662. In the spot market, the yuan CNY=CFXS was changing hands at 6.4680, 35 pips firmer than the previous late session close.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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