Key index ends lower on decline in PMI
By Lilith Hu |
March 23, 2012, Friday
|
Print Edition
Print Edition
SHANGHAI stocks edged down yesterday as investors were worried that a fall in the flash Purchasing Managers Index signaled a more severe contraction in China's industrial activities.
The Shanghai Composite Index shed 0.1 percent to end at 2,375.77 points, the lowest level in a week.
HSBC and Markit Economics said the preliminary reading of China's manufacturing PMI fell to 48.1 in March from a final reading of 49.6 in February. The reading for March reached its lowest level in four months, they said yesterday.
"Domestic and external demands continued to weaken as new orders hit a four-month low," said Qu Hongbin, chief economist for China at HSBC.
"The decline in manufacturing PMI reflects recent expectations of a further slowdown in industrial production. (As) economic growth is likely to fall further, the government should ease policies to stabilize growth," he said.
Metal and coal firms fell as the lower PMI suggested weakened industrial activities, and therefore less demand for their products.
Jiangxi Copper Co, China's biggest producer of the metal, shed 2.12 percent to 25.89 yuan (US$4.10). Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co, China's biggest producer of rare earth, plunged 5.48 percent to close at 66.45 yuan.
The Shanghai Composite Index shed 0.1 percent to end at 2,375.77 points, the lowest level in a week.
HSBC and Markit Economics said the preliminary reading of China's manufacturing PMI fell to 48.1 in March from a final reading of 49.6 in February. The reading for March reached its lowest level in four months, they said yesterday.
"Domestic and external demands continued to weaken as new orders hit a four-month low," said Qu Hongbin, chief economist for China at HSBC.
"The decline in manufacturing PMI reflects recent expectations of a further slowdown in industrial production. (As) economic growth is likely to fall further, the government should ease policies to stabilize growth," he said.
Metal and coal firms fell as the lower PMI suggested weakened industrial activities, and therefore less demand for their products.
Jiangxi Copper Co, China's biggest producer of the metal, shed 2.12 percent to 25.89 yuan (US$4.10). Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co, China's biggest producer of rare earth, plunged 5.48 percent to close at 66.45 yuan.
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