Index declines ahead of official PMI data release
By Lu Nengneng |
June 1, 2012, Friday
|
Print Edition
Print Edition
SHANGHAI'S stocks remained weak yesterday amid a prevailing cautious sentiment toward the release of the official Purchasing Managers' Index for May today.
The Shanghai Composite Index shed 0.5 percent to 2,372.23 points.
Investors turned their attention to the official PMI release as they expect it to show a contraction in industrial activities, signaling that China's economy continues to slow down.
The official data may snap a four-month rise, dropping to 51.5 from April's 53.3 after the HSBC flash PMI reading fell to 48.7 in May from 49.3 and earnings at industrial companies nationwide shed 2.2 percent last month, compared with a 4.5 percent gain in March.
"As the European sovereign debt crisis is deepening, we are likely to see a slump in the export order sub-index," Ding Shuang, economist at Citibank, said.
Banks lost amid worries about their risk exposure as China's economy slows further.
The Bank of Communications dropped 1.3 percent to end at 4.61 yuan and China CITIC Bank pared 1.2 percent to finish at 4.24 yuan yesterday.
The Shanghai Composite Index shed 0.5 percent to 2,372.23 points.
Investors turned their attention to the official PMI release as they expect it to show a contraction in industrial activities, signaling that China's economy continues to slow down.
The official data may snap a four-month rise, dropping to 51.5 from April's 53.3 after the HSBC flash PMI reading fell to 48.7 in May from 49.3 and earnings at industrial companies nationwide shed 2.2 percent last month, compared with a 4.5 percent gain in March.
"As the European sovereign debt crisis is deepening, we are likely to see a slump in the export order sub-index," Ding Shuang, economist at Citibank, said.
Banks lost amid worries about their risk exposure as China's economy slows further.
The Bank of Communications dropped 1.3 percent to end at 4.61 yuan and China CITIC Bank pared 1.2 percent to finish at 4.24 yuan yesterday.
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