The Mainland China share market finished higher on Monday, 04 January 2021, as appetite for risk assets improved after release of better than expected Chinese manufacturing PMI data for December.
At closing bell, the benchmark Shanghai Composite Index advanced 0.86%, or 29.89 points, to 3,502.96. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 2.45%, or 57.17 points, to 2,386.54. The blue-chip CSI300 index rose 1.08%, or 56.43 points, to 5,267.72.
Activity in China's factory sector rose in December as the economy sustained its recovery to pre-pandemic levels, a business survey showed on Monday, even as higher costs slowed the pace of expansion. The Caixin/Markit manufacturing purchasing managers' index (PMI), which tracks sentiment among smaller, private firms, fell to 53.0 last month from a decade-high 54.9 in November.
A number above 50 indicates an expansion in activity, while a reading below that signals a contraction. The December reading marked the eighth consecutive month of expansion. A separate PMI by an official industry group, the China Federation of Logistics & Purchasing, declined to 51.9 from the previous months 52.1.
Banking and real estate stocks retreated as Beijing moved to cap property loans by banks. China's central bank issued a regulation on Thursday to cap property loans by banks, as authorities shift their attention back to debt risks and look to guard against any overlending to the property sector.
CURRENCY NEWS: China's yuan weakened against the dollar as the central bank set a softer midpoint. Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.5408 per dollar, 159 pips weaker than the previous fix.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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