China's stocks up more than 2% Monday on strong PMI
0 
China's stocks rose more than 2 percent Monday buoyed by solid manufacturing data.
The benchmark Shanghai Composite Index was up 2.52 percent, or 75.19 points, to close at 3,054.02.
The Shenzhen Component Index rose 2.82 percent, or 376.53 points, to finish at 13,743.77.
Combined turnover rose to 450.3 billion yuan (65 billion U.S. dollars) from 355.5 billion yuan the previous trading day.
Coal and non-ferrous metal shares led the rise. Yanzhou Coal Mining Co. Ltd. rose by the daily limit of 10 percent to 32.33 yuan. China Shenhua Energy Co., China's biggest coal producer, rose 3.39 percent to 29.57 yuan. Zijin Mining Group, the country's largest gold producer, surged by 6.3 percent to 10.25 yuan.
China Federation of Logistics and Purchasing (CFLP) said Monday the Purchasing Managers Index (PMI) of the country's manufacturing sector rose to 54.7 percent in October, suggesting increased inflationary pressures in the near term.
The figure, 0.9 percentage points higher than September, was the index's third consecutive monthly increase and 20th straight month above 50 percent which indicates economic expansion.
ChiNext companies were also boosted by the solid October PMI. Investors were optimistic on the prospects of these companies despite the expiry of the lockup restrictions on 28 stocks, which usually results in a sell-off, on the ChiNext Board, said Qi Dapeng, an analyst with Soochow Securities.
The ChiNext Index, launched by the Shenzhen Stock Exchange (SSE) on June 1, added 43 points, or 4.04 percent, to close at 1,107.52 on Monday.
Go to Forum >>0 Comments