Shanghai shares rise most in week on PMI

By Ye Zhen | August 1, 2013, Thursday |

Online Edition

Shanghai stocks rose the most in a week today, helping the key index retrieve the 2,000-point level, after China reported a surprising improvement in manufacturing and the government vowed to boost domestic demand to support economic growth.

The Shanghai Composite Index gained for a third straight day, adding 1.77 percent to 2,029.07 points.

China’s official Purchasing Managers’ Index, a gauge of manufacturing activity slanted more toward state-owned enterprises, rise to 50.3 in July, according to the National Bureau of Statistics.

The figure represents a slender gain from 50.1 in June and is higher than a market expectation of 49.8. A reading of 50 or higher indicates that activity is expanding.

Zhao Qinghe, a senior statistician at the bureau, said the rebound in July’s PMI was largely due to a recovery in business confidence after the government unveiled a raft of measures to stabilize growth and promote restructuring.

Premier Li Keqiang told a State Council meeting yesterday that the government would increase purchases of public services from sources outside the government and strengthen urban infrastructure construction to bolster investment and consumption, according to a statement on the government’s website.

Lenders gained among financial institutions after the central bank injected 34 billion yuan (US$5.6 billion) to the banking system via 14-day reverse repurchase agreements today.

China Minsheng Banking Corp rose 2.2 percent to 8.46 yuan. The Industrial Bank increased 2.3 percent to 9.27 yuan. China Merchants Bank added 2.5 percent to 10.87 yuan.

Business Finance

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Shanghai shares rise most in week on PMI

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