Both the manufacturing and non-manufacturing PMI data showed solid growth maintained in August [Xinhua]
Chinese stocks dipped on Monday on fears of an US Federal Reserve interest rate hike, and despite positive economic data over the weekend.
The benchmark Shanghai Composite Index was down 1.85 per cent to close at 3,021.98 Monday, while Hong Kong’s Hang Seng plummeted 3.36 per cent to close at 23, 290.60.
The Shenzhen component index closed 2.8 per cent lower at 10,461.58.
The Hang Seng had closed at its highest point in a year on Friday after China’s National Bureau of Statistics (NBS) released a slew of data, which coupled with reports earlier in the week, showed that the economy is heading toward sustainable growth.
According to the NBS, the main gauge of inflation – the consumer price index (CPI) grew 1.3 percent year on year in August, down from July’s 1.8 per cent.
At the same time, China’s producer price index (PPI), which gauges the costs of goods at the manufacturing origin, dropped 0.8 per cent year on year in August.
Additionally, data showed that throughout August 2016, China’s non-manufacturing purchasing manager index was 53.5 per cent, a decrease of 0.4 percentage points over the previous month.
Despite the small drop, the non-manufacturing PMI was solid for much of the year and indicated sustained stability and sound growth.
On September 1, the NBS also showed that the the manufacturing Purchasing Managers’ Index (PMI) came in at 50.4 in August, a slight jump up from 49.9 in July.
The Chinese government’s manufacturing Purchasing Managers’ Index (PMI) came in at 50.0 in June, versus 50.1 logged in May, although output hit a 12-month high.
The government survey tracks the health of large and state-owned companies.
The reading is above the neutral 50-point level, signalling an expansion in the manufacturing sector, according to the NBS.
A reading below 50 represents contraction.
Meanwhile, the Chinese automotive market hit new records in sales growth last week, industry data shows.
The China Association of Automobile Manufacturers (CAAM) said that 2.07 million cars were sold domestically, up 24.2 per cent from the same time last year. Automobile production also rose by nearl 27 per cent from the same time in 2015.
CAAM said that the figures indicated the fastest growth in more than three years.
The BRICS Post with inputs from Agencies
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