China Market rises after factory activity beats expectations

The China share market finished session higher on Friday, 31 July 2020, as risk appetite buying boosted up after the National Bureau of Statistics latest data revealed that domestic official manufacturing Purchasing Managers' Index for July came in above expectations at 51.1 and better than June's reading of 50.9. However, market gains capped amid uncertainties in coronavirus resurgence, after the China's health authority reported 127 new coronavirus cases on the mainland on 30 July 2020, up from 105 the previous day.

At closing bell, the benchmark Shanghai Composite Index added 0.71%, or 23.19 points, to 3,310.01. The Shenzhen Composite Index, which tracks stocks on China's second exchange, rose 1.33%, or 29.54 points, to 2,256.87. The blue-chip CSI300 index grew 0.84%, or 38.90 points, to 4,695.05. For the July 2020, the Shanghai Composite index gained 10.9% and the CSI300 index was up 12.8 per cent.

ECONOMIC NEWS: The official PMI for manufacturing index stood at 51.1, better than June's reading of 50.9. The services PMI was 54.2, down from 54.4 in June but maintained in the territory above 50, which indicates an expansion in the sector.

CURRENCY NEWS: - The yuan climbed against a lacklustre U.S. dollar on Friday, as China's economy and financial markets showed further signs of recovery. The People's Bank of China set the midpoint rate CNY=PBOC at 6.9848 prior to market open, up by 0.08% from prior day rate fixing of 6.9848. The onshore yuan CNY=CFXS strengthened 0.3% to 6.9886 per dollar. The offshore yuan CNH=D3 firmed 0.13% to 6.9920. The yuan was up 1.1% both onshore and offshore from the previous month.

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