At closing bell, the benchmark Shanghai Composite Index added 1.75%, or 57.96 points, to 3,367.97. The Shenzhen Composite Index, which tracks stocks on China's second exchange, rose 2.6%, or 58.57 points, to 2,315.44. The blue-chip CSI300 index grew 1.62%, or 76.26 points, to 4,771.31.
Chinese shares rallied after survey results from IHS Markit showed the country's manufacturing sector expanded at the fastest pace since early 2011. Supporting the higher PMI figure was a steeper increase in production across Chinese manufacturing firms. Output expanded for the fifth month in a row, and at the fastest rate for nine-and-a-half years, with many companies citing greater client demand.
ECONOMIC NEWS: China Caixin Manufacturing Sector Expands Further In July-- China manufacturing sector continued to expand in July with a manufacturing PMI score of 52.8, the latest survey from Caixin revealed on Monday, up sharply from 51.2 in June. Supporting the higher PMI figure was a steeper increase in production across Chinese manufacturing firms. Output expanded for the fifth month in a row, and at the fastest rate for nine-and-a-half years, with many companies citing greater client demand amid a further recovery in market conditions following the COVID-19 outbreak. Moreover, new business expanded at a solid pace that was the steepest since the start of 2011.
CURRENCY NEWS: The yuan was steady on Monday, as investors kept a wary eye over tensions between Beijing and Washington. Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at one-week low of 6.998 per dollar, 132 pips or 0.19% weaker than the previous fix of 6.9848. In the spot market, the onshore yuan CNY=CFXS opened at 6.9791 per dollar and was changing hands at 6.9743 at midday, only 2 pips firmer than the previous late session close.
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