The Mainland China share market finished session higher on Monday, 2 August 2021, on expectations of increased support for the economy after official data showed Chinese manufacturing activity growth slowed in July. Meanwhile, buying was spirited further as Politburo meeting has emphasized stability again.
At closing bell, the benchmark Shanghai Composite Index surged 1.97%, or 66.93 points, to 3,464.29. The Shenzhen Composite Index, which tracks stocks on China's second exchange, rose 2.15%, or 51.30 points, to 2,436.92. The blue-chip CSI300 index fell 2.55%, or 122.56 points, to 4,933.73.
Market risk sentiments underpinned as of much-watched Politburo meeting Friday, which was seen to indicate that authorities will likely take more steps to help struggling small businesses, boost fiscal spending and possibly reduce the reserve requirement ratio for banks again. The ruling Communist Party's top decision-making body said on Friday that China would stick with its current economic policies in the second half of the year, maintaining an accommodative stance amid an uneven domestic recovery and global uncertainty.
Shares of infrastructure-related companies advanced after the Politburo meeting signaled that the sale of special local government bonds will help accelerate second-half fiscal spending to support the economy.
Sany Heavy Industry Co. rose by the 10% daily limit.
ECONOMIC NEWS: China Caixin Manufacturing PMI Expands At Slower Pace In July - China manufacturing sector continued to expand in July, with a manufacturing PMI score of 50.3, the latest survey from Caixin showed on Monday. That's down from 51.3 in June, although it remains above the boom-or-bust line of 50 that separates expansion from contraction. A key factor weighing on the headline reading was a renewed fall in total new business during July. Though only marginal, it marked the first decline in sales for 14 months.
CURRENCY NEWS: China yuan softened against the dollar on Monday, inline with lower mid-point fixing by central bank, disappointing economic data and worries over spreading domestic COVID-19 cases of the Delta variant. Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate at 6.4660 per dollar, 58 pips weaker than the previous fix of 6.4602. In the spot market, onshore yuan opened at 6.4640 per dollar and was changing hands at 6.4653 at midday, 33 pips weaker than the previous late session close.
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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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