Home Business News Chinese stocks advanced following better-than expected manufacturing PMI data

Chinese stocks advanced following better-than expected manufacturing PMI data

5th Jun 24 9:04 am

Chinese stocks ended higher, with the CSI 300 Index rebounding 0.75% to close at 3,615 points.

The equity market in China recovered from its recent losses on the back of improved investor sentiment.

This comes after the release of the Chinese Manufacturing PMI for May, which showed an uptick to 51.7 points from the previous April reading of 51.4 points.

This suggests that Chinese manufacturing activities have expanded considerably. The market now turns towards the upcoming release of the Chinese Services PMI data on Wednesday, which is also expected to see a slight uptick.

If the services sector in China expands beyond market expectations, this could further support Chinese equities.

Furthermore, seizing on this recent uptick in the Chinese stock market, local companies are rushing to raise funds via a variety of equity and equity-linked offerings.

Major firms across sectors are looking to capitalise on the improved market sentiment. Property developer Poly Developments is considering raising up to $1.7 billion through convertible notes, while coal producer Yankuang Energy Group and metals company MMG Ltd are also proposing share sales and rights offerings in Hong Kong.

E-commerce giant JD.com is another company tapping into the market recovery. The strong recovery of Chinese stock prices drives the recent increase in fundraising activity.

Looking at individual stocks, Kweichow Moutai advanced 0.84% among the index heavyweight components, while PetroChina retreated. It was a relatively mixed day for the Chinese “Big Four” banks, with ICBC advancing slightly more than half a percent, and China Merchants Bank adding 1.14%. However, the Agricultural Bank of China and the Bank of China ended the session flat.

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