Preliminary PMI data cast cloud over index
By Hu Xiaocen |
May 25, 2012, Friday
|
Print Edition
Print Edition
SHANGHAI stocks yesterday fell for the second straight day after HSBC and Markit Economics said the preliminary Purchasing Manager Index weakened in May, which suggested China's economic slowdown may be deepening.
The Shanghai Composite Index fell 0.53 percent to 2,350.97 points.
The HSBC flash PMI shed to 48.7 in May against a final reading of 49.3 for April. If the preliminary reading is confirmed on June 1, it will be the seventh consecutive month that the index fell below 50. A reading under 50 signals a contraction in production activities.
Li Xunlei, chief economist at Haitong Securities, said: "The data showed the economy continued to decline. The central bank may lower reserve requirement ratios as soon as in June, and reduce the interest rates after July."
During his recent visit to Jiangsu Province, Vice Premier Li Keqiang said that if the economic data showed a deterioration in May, "it's possible the central bank will lower the interest rates."
PetroChina Co, the nation's biggest oil firm, fell 0.5 percent to 9.51 yuan (US$1.50). Aluminum Corp of China Ltd, the listed unit of the nation's biggest maker of the metal, shed 0.4 percent to 6.78 yuan.
Haitong Securities dropped 1.8 percent to 10.18 yuan, China Merchants Securities lost 1.5 percent to 13.11 yuan and Sinolink Securities fell 2.7 percent to 14.94 yuan.
Poly Real Estate Group Co, China's second-biggest listed developer, lost 1.2 percent to finish at 13.45 yuan.
The Shanghai Composite Index fell 0.53 percent to 2,350.97 points.
The HSBC flash PMI shed to 48.7 in May against a final reading of 49.3 for April. If the preliminary reading is confirmed on June 1, it will be the seventh consecutive month that the index fell below 50. A reading under 50 signals a contraction in production activities.
Li Xunlei, chief economist at Haitong Securities, said: "The data showed the economy continued to decline. The central bank may lower reserve requirement ratios as soon as in June, and reduce the interest rates after July."
During his recent visit to Jiangsu Province, Vice Premier Li Keqiang said that if the economic data showed a deterioration in May, "it's possible the central bank will lower the interest rates."
PetroChina Co, the nation's biggest oil firm, fell 0.5 percent to 9.51 yuan (US$1.50). Aluminum Corp of China Ltd, the listed unit of the nation's biggest maker of the metal, shed 0.4 percent to 6.78 yuan.
Haitong Securities dropped 1.8 percent to 10.18 yuan, China Merchants Securities lost 1.5 percent to 13.11 yuan and Sinolink Securities fell 2.7 percent to 14.94 yuan.
Poly Real Estate Group Co, China's second-biggest listed developer, lost 1.2 percent to finish at 13.45 yuan.
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