Index posts strongest rebound on flash PMI
By Lydia Chen |
October 25, 2011, Tuesday
|
Print Edition
Print Edition
SHANGHAI stocks yesterday posted the strongest rebound in nearly two weeks, led by financial-related and manufacturing counters after an industrial index indicated China's industrial activities may expand in October for the first time in four months.
The Shanghai Composite Index jumped 2.3 percent to end at 2,370.33 points, the biggest rise since October 12 and the first gain in five trading days.
The index has slumped 16 percent so far this year after the People's Bank of China raised interest rates three times and ordered lenders to set aside a bigger portion of their deposits to curb inflation that's near a three-year high.
Manufacturers and copper producers rallied yesterday after a preliminary reading for the HSBC Purchasing Managers' Index rebounded to 51.1, the highest in five months, HSBC Holdings Plc and Markit Economics said. The index indicates an expansion when the reading is above 50.
Jiangxi Copper climbed 4.1 percent to 25.98 yuan. China CSSC Holdings increased 5.8 percent to 33.44 yuan.
The rebound came after Premier Wen Jiabao said over the weekend that China must continue to control food and housing prices to ease soaring inflation and maintain economic development and social stability.
Shares of brokerages also gained after the Securities Times reported China has allowed one of them to set up a company to undertake short-selling and margin trading activities.
CITIC Securities, the country's largest brokerage, surged 4.5 percent to 11.79 yuan. Haitong Securities rose 6.7 percent to 9.10 yuan.
Haitong received approval from the government last week to set up the company and has held its first board meeting, the newspaper said over the weekend.
The Shanghai Composite Index jumped 2.3 percent to end at 2,370.33 points, the biggest rise since October 12 and the first gain in five trading days.
The index has slumped 16 percent so far this year after the People's Bank of China raised interest rates three times and ordered lenders to set aside a bigger portion of their deposits to curb inflation that's near a three-year high.
Manufacturers and copper producers rallied yesterday after a preliminary reading for the HSBC Purchasing Managers' Index rebounded to 51.1, the highest in five months, HSBC Holdings Plc and Markit Economics said. The index indicates an expansion when the reading is above 50.
Jiangxi Copper climbed 4.1 percent to 25.98 yuan. China CSSC Holdings increased 5.8 percent to 33.44 yuan.
The rebound came after Premier Wen Jiabao said over the weekend that China must continue to control food and housing prices to ease soaring inflation and maintain economic development and social stability.
Shares of brokerages also gained after the Securities Times reported China has allowed one of them to set up a company to undertake short-selling and margin trading activities.
CITIC Securities, the country's largest brokerage, surged 4.5 percent to 11.79 yuan. Haitong Securities rose 6.7 percent to 9.10 yuan.
Haitong received approval from the government last week to set up the company and has held its first board meeting, the newspaper said over the weekend.
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