China Market extends gain

The Mainland China share market finished session higher on Thursday, 02 September 2021, as investors continued hunting for beaten down stocks on raising hopes for more policy support after soft economic data. Meanwhile, buying sentiments also booted up after the People's Bank of China also said it would provide 300 billion yuan of low-cost funding to support small- and medium-sized firms.

At closing bell, the benchmark Shanghai Composite Index added 0.84%, or 29.94 points, to 3,597.04. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 0.41%, or 9.88 points, to 2,427.77. The blue-chip CSI300 index fell marginal 0.00%, or 0.05 point, to 4,869.41.

A slew of recent economic data, including both official and private manufacturing surveys released this week, showed that the world's second-largest economy could face increasing downside pressure in the remainder of the year, raising hope for more policy support measures.

ECONOMIC NEWS: China Caixin Manufacturing Sector Falls Into Contraction In August- China manufacturing sector fell into contraction in August, the latest survey from Caixin revealed on Wednesday with a manufacturing PMI score of 49.2, down from 50.3 in July. It also drops beneath the boom-or-bust line of 50 that separates expansion from contraction.

The Wednesday private survey release came after the official manufacturing PMI released Tuesday showed Chinese factory activity growth slowing in August, coming in at 50.1 against July's reading of 50.4.

CURRENCY NEWS: China's yuan softened against the U.S. dollar on Thursday, despite firmer mid-point fixing by central bank. Prior to the market opening, the People's Bank of China (PBOC) set the midpoint CNY=PBOC at 6.4594 per dollar, 0.13% firmer than the previous fix of 6.4680. In the spot market, the yuan CNY=CFXS opened at 6.4580 per dollar and was changing hands at 6.4622 at midday, 17 pips weaker than the previous late session close.

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