China Market rises on upbeat factory data

The China share market closed session higher on Wednesday, 01 July 2020, as investors sentiments lifted by hopes of a faster-than-expected economic recovery after better-than-expected official and private factory activity data.

At closing bell, the benchmark Shanghai Composite Index added 1.38%, or 41.31 points, to 3,025.98. The Shenzhen Composite Index, which tracks stocks on China's second exchange, rose 0.79%, or 15.59 points, to 1,991.11. The blue-chip CSI300 index gained 2.01%, or 83.82 points, to 4,247.78.

China markets got a boost after a private survey showed Chinese manufacturing activity in June growing more than expected, with the Caixin/Markit manufacturing Purchasing Manager's Index (PMI) coming in at 51.2 last month. PMI readings above the 50-level signify expansion on a monthly basis, while those below that figure represent contraction. The official manufacturing PMI released on Tuesday from the National Bureau of Statistics also showed factory activity in China expanding in June, with a manufacturing PMI score of 50.9, up from 50.6 in May.

CURRENCY NEWS: The yuan edged lower against the dollar on Wednesday, despite firmer mid-point fixing by central bank. Prior to the market open, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at 7.071 per dollar, 0.12% firmer than the previous fix of 7.0795. The spot yuan CNY=CFXS was changing hands at 7.0652 late afternoon, 2 pips weaker than the previous day close of 7.065.

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