China markets recover on strong PMI data, talk of regional development plans
Chinese markets recovered from yesterday's record falls after encouraging manufacturing data restored confidence and newspapers reported the government will soon announce a batch regional development policies.
The Hang Seng Index was up 0.8 percent, while the Shanghai Composite Index lifted 0.6 percent. The Shenzhen Component Index edged forward 0.28 percent. The China Enterprises Index, which represents top Hong Kong-listed mainland stocks, was up 0.6 percent.
Fan Hengshan, head of the regional economy department of the National Development and Reform Commission (NDRC), told attendees at the Fourth Eco-Fortune (China) Forum on 29th August that Beijing is soon to release a batch of policies to promote regional development, the 21st Century Business Herald reported today.
China Federation of Logistics & Purchasing's measure of the purchasing managers index (PMI) rose to a 16-month high of 54 in August from last month's 53.3. The HSBC China Manufacturing PMI, was also significantly up at 55.1 in August from 52.8 in July.
Fabric producers soared. South China (China) Ltd. (HK: 0413) rose 24.2 percent. Co-Prosperity Hldgs. Ltd. (HK:0707) was up 7 percent. Kam Hing Intl. Hldgs. Ltd (HK:2307) gained 15.7 percent.
Materials shares made the biggest overall gain in Hong Kong, rising 2.9 percent on average. Southeast Cement (HK: 1110) was up 2.3 percent. Chia Hsin Cement Corp. (HK: 1103) was up 1.7 percent. China Glass Holdings Ltd. (HK:3300) rose 0.8 percent.
Banks also performed well. China Merchants Bank (SH:600036) rose 2.4 percent. Industrial & Commercial Bank of China (HK:1398, SH:601398), the nation's biggest lender, rose 2 percent in Shanghai and 0.8 in Hong Kong. Bank of China (SH:601988, HK:2388) rose 1.9 percent in Shanghai and 1.3 percent in Hong Kong.
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