China Market closed for National Day holiday

The Mainland China equity market closed for National Day holiday on Monday, 1 October 2018. The Mainland China market will be out for the week due to China's "Golden Week" holiday. Trading resumes on 8 October 2018.

ECONOMIC NEWS: The China's official Purchasing Managers' Index (PMI), released by the National Bureau of Statistics on Sunday, fell to a seven-month low of 50.8 in September from 51.3 in August, but remained above the 50-point mark that separates growth from contraction for the 26th straight month. New export orders, an indicator of future activity, contracted for a fourth straight month, with the sub-index falling to 48.0 from 49.4 in August.

A separate manufacturing index, calculated independently by the Caixin media group, also showed a deceleration, adding to evidence that economic growth is slowing amid an escalating trade war with the U.S. The Caixin China General Manufacturing Purchasing Managers' Index (PMI), which gives a snapshot of operating conditions in the manufacturing sector, fell to 50, the dividing line that separates expansion from contraction, from 50.6 in August. The reading was the weakest in 16 months and marked the fourth straight monthly drop.

Separately, survey released by the China's National Bureau of Statistics on Sunday showed growth in China's service sector picked up in September, with the official non-manufacturing Purchasing Managers' Index (PMI) rising to 54.9 from 54.2 the previous month.

NEWS FROM THE PRESS: China to lower tariff rates on 1,585 taxable items -- Starting from Nov. 1 this year, China will slash most-favored-nation tariffs on a total of 1,585 taxable items from 1 Nov 2018, as the country moves to further open its market, according to statement released by the Customs Tariff Commission of the State Council on Sunday, 30 September 2018. The average tariff rate will be reduced from 10.5% to 7.8% for these items. The number accounts for 19% of the total taxable items. After the adjustment, China's overall tariff rate will stay at 7.5%, down from 9.8% last year. Such a rate is slightly higher than that of the European Union but lower than most developing countries. The tariff cuts covered sectors including textiles, ceramics, steel, machinery and some resource-based products and primarily processed goods. Lowering tariffs to an appropriate level can promote balanced development of foreign trade and opening-up. The move came after China provided zero tariffs on a majority of imported medicines starting 1 May 2018 and a reduction of tariffs on vehicles and auto parts as well as some consumer goods starting 1 July 2018.

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