China stocks flat as factory data offsets profit-booking

by Jonathan Adams
blue-chip index

China’s blue-chip index was up 0.12%, while the Shanghai Composite index was up 0.04%

China stocks were little changed on Tuesday, as strong factory data reflecting a bounce-back in its economy from the coronavirus crisis offset profit-booking among consumer and agricultural shares.

China’s factory activity expanded at the fastest clip in nearly a decade in August, bolstered by the first increase in new export orders this year, the Caixin/Markit Manufacturing Purchasing Managers’ Index (PMI) showed.

At the midday break, the Shanghai Composite index was up 0.04% at 3,397.17.

China’s blue-chip CSI300 index was up 0.12%. Financials, consumer staples, real estate, and healthcare shares were down between 0.09% and 1.12%.

On Monday, the CSI 300 Consumer Staples Index rose to a record high of 33,349 and the China Mainland Agriculture Index also scaled a peak of 8,825.

Chinese H-shares listed in Hong Kong rose 0.4% to 10,031.63, while the Hang Seng Index was down 0.02% at 25,171.55. The smaller Shenzhen index was up 0.18%, the start-up board ChiNext Composite index was higher by 0.35% and Shanghai’s tech-focused STAR50 index was up 0.32%​.

Defence-related stocks in China surged after fresh conflict reignited between Chinese and Indian troops at the border of both countries.

Among individual names, OFILM Group tumbled by their 10% daily trade limit to 17.02 yuan ($2.49), their lowest since June 29, on report that the company has been removed from Apple’s supply-chain list.

Around the region, MSCI’s Asia ex-Japan stock index was weaker by 1.26%, while Japan’s Nikkei index was down 0.07%.

The yuan was quoted at 6.8208 per U.S. dollar, 0.4% firmer than the previous close of 6.8483.

This article is for information purposes only.
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