China Market extends gains on private manufaturing PMI data

The Mainland China share market finished higher for second consecutive session on Tuesday, 01 June 2021, after a private report showed Chinese manufacturing expanded in May.

The Caixin China PMI Manufacturing Index rose to 52 in May from 51.9 for the previous month, signifying the nation's industrial companies were in expansion mode. The report, which surveys smaller enterprises, contrasted with a slight drop in activity in an official manufacturing gauge published by the National Bureau of Statistics a day earlier.

At closing bell, the benchmark Shanghai Composite Index advanced 0.26%, or 9.24 points, to 3,624.71. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 0.41%, or 9.82 points, to 2,429.57. The blue-chip CSI300 index added 0.2%, or 10.11 points, to 5,341.68.

The best performing sectors in the Shanghai Stock Exchange were Health Care Facilities (up 7.51%), Vintners & Others (up 6.88%), Computer & Electronic Equipment Dealer (up 6.14%), Oil & Gas Drilling (up 6.11%), and Fiber and Resin (up 5.85%), while the worst performing sectors were Livestock Products (down 3.27%), Life & Health Insurance (down 2.9%), Brewers (down 1.95%), Financial Exchanges & Data (down 1.93%), and Investment Banking & Brokerage (down 1.84%).

The best performing sectors in the Shenzhen Stock Exchange were Other Construction Motorcycle (up 8.69%), Specialized Finance (up 8.08%), Pharmaceutical & Biotechnology Services (up 4.04%), Automobile (up 3.8%), and Commercial Printing (up 3.76%), while the worst performing sectors were Water (down 5.15%), Soft Drinks (down 4.2%), Thermal Power (down 2.92%), Heating or Other Utilities (down 2.38%), and Heavy Electrical Equipment (down 1.84%).

The best performing blue chip stocks of the CSI300 index were Wanhua Chemical Group Co (up 7.42%), Kweichow Moutai Co (up 1.03%), WuXi AppTec Co (up 5.14%), BYD Co (6.02%), Jiangsu Yanghe Brewery Joint-Stock Co (up 7.23%), Sany Heavy Industry Co (up 4.39%), and TOPCHOICE MEDICAL CORP (up 7.79%), while the worst performing blue chip stocks were China Merchants Bank Co (down 1.43%), Industrial Bank (down 2.21%), and Ping An Insurance (Group) Company of China (down 0.93%).

CURRENCY NEWS: China yuan edged up against the dollar on Tuesday, as firmer mid-point fixing by central bank. The yuan fall in morning trade after authorities ordered banks to increase their foreign exchange holdings. The People's Bank of China (PBOC) said on Monday it would raise the FX reserve requirement ratio for financial institutions to 7% from 5%, from June 15, its first such move in 14 years. Prior to market opening, the PBOC set the midpoint rate CNY=PBOC at a new three-year high of 6.3572 per dollar, 110 pips or 0.17% firmer than the previous fix of 6.3682. The onshore spot yuan CNY=CFXS opened at 6.3660 per dollar and was changing hands at 6.3705 at midday, 5 pips firmer than the previous late session close.

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