Stocks mixed as PMI disappoints market

Source: Xinhua | 2018-08-01

CHINA’S equities markets finished the day mixed yesterday, after official data showed factory activity in July fell short of expectations.

The Shanghai Composite Index moved into positive territory on the back of rises of financial and state-owned enterprises stocks to close 0.26 percent, or 7.35 points, higher at 2876.40, marking the end of four straight days of decline.

But the Shenzhen Component Index edged down 0.03 percent to 9178.78 points, while the Nasdaq-style ChiNext enterprise board inched up by 0.10 percent to finish at 1561.26.

The manufacturing Purchasing Manager’s Index came in at 51.2 for July, the National Bureau of Statistics said yesterday — slightly lower than the expected 51.3 in a Reuters poll. The PMI in July was affected by adverse weather, global trade tensions and other seasonal factors, analysts said.

Buoyed by Monday’s announcement from the State Council, or China’s Cabinet, that it will promote state-owned capital to participate in the investment and operation of corporate reforms, Phoenix Optical Group Co Ltd, surged by the daily maximum cap of 10 percent to close at 12.61 yuan (US$1.85).

ZheShang Securities noted that despite recent positive policy measures, the downward trend of the economy has not yet been reversed.