Gain in services PMI lifts key index
By Feng Jianmin |
November 4, 2011, Friday
|
Print Edition
Print Edition
SHANGHAI'S key stock index yesterday rose for the third day after an HSBC report showed the nation's service industry was growing at its fastest pace in four months.
The Shanghai Composite Index edged up 0.2 percent to 2,508.09 points, its highest close since September 21.
The HSBC Business Activity Index rose from 53 to 54.1 in October, indicating a solid pace of expansion.
"The gain in the service sector's PMI (Purchasing Managers' Index), along with a notable improvement in the manufacturing sector, confirms the strength of the Chinese economy," Qu Hongbin, chief economist for China at HSBC, said in a report yesterday.
But China's official non-manufacturing PMI, which is based on a different sample, fell to 57.7 last month from 59.3 in September as slower economic growth is hitting logistics and transport, the China Federation of Logistics and Purchasing said.
Haitong Securities wrote yesterday that: "The government has expressed its intention to support economic growth, and we think policies will not tighten further. Concerns of a hard landing can ease now, and we think there is still room for market gains."
Software firms extended previous gains on speculation the government will cut their tax to boost growth. Shandong Inspur Software Co rose by the daily limit of 10 percent to 14.12 yuan as did China National Software and Service Co at 20.56 yuan.
Property developers were weak after data showed that nine major cities in China had no land transactions for residential projects in October. Poly Real Estate Group fell 1.8 percent to 9.97 yuan.
The Shanghai Composite Index edged up 0.2 percent to 2,508.09 points, its highest close since September 21.
The HSBC Business Activity Index rose from 53 to 54.1 in October, indicating a solid pace of expansion.
"The gain in the service sector's PMI (Purchasing Managers' Index), along with a notable improvement in the manufacturing sector, confirms the strength of the Chinese economy," Qu Hongbin, chief economist for China at HSBC, said in a report yesterday.
But China's official non-manufacturing PMI, which is based on a different sample, fell to 57.7 last month from 59.3 in September as slower economic growth is hitting logistics and transport, the China Federation of Logistics and Purchasing said.
Haitong Securities wrote yesterday that: "The government has expressed its intention to support economic growth, and we think policies will not tighten further. Concerns of a hard landing can ease now, and we think there is still room for market gains."
Software firms extended previous gains on speculation the government will cut their tax to boost growth. Shandong Inspur Software Co rose by the daily limit of 10 percent to 14.12 yuan as did China National Software and Service Co at 20.56 yuan.
Property developers were weak after data showed that nine major cities in China had no land transactions for residential projects in October. Poly Real Estate Group fell 1.8 percent to 9.97 yuan.
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