China Stocks recover on policy support hopes

The Mainland China share market finished session higher on Wednesday, 01 September 2021, as investors chased for value buying on raising hopes for more policy support after latest data showed that China's factory activity slipped into contraction in August for the first time in nearly 1-1/2 years as COVID-19 measures and supply bottlenecks dragged on output.

At closing bell, the benchmark Shanghai Composite Index added 0.65%, or 23.16 points, to 3,567.10. The Shenzhen Composite Index, which tracks stocks on China's second exchange, fell 0.49%, or 11.97 points, to 2,417.89. The blue-chip CSI300 index added 1.33%, or 63.85 points, to 4,869.46.

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 Wednesday, after signs of slowdown in factory activity. Prior to the market opening, the People's Bank of China (PBOC) set the midpoint CNY=PBOC at 6.480 per dollar, as against previous day fix of 6.4679.In the spot market, onshore yuan opened at 6.4620 per dollar and was changing hands at 6.4623 at around late afternoon, 19 pips weaker from the previous late session close.

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