China’s services sector growth, though slightly dipped in September, has maintained an above 50-points level for the past two months, indicating that the economy is doing well [Archives]
Chinese stocks edged up to close higher Monday after a week-long holiday and despite the Central Bank’s move to keep the yuan at a six-year low against the dollar.
The benchmark Shanghai Composite index closed 1.45 per cent higher at 3,048.14.
The Shenzhen Composite Index gained 1.65 per cent to 10,741.69.
The mainland Chinese indices were buoyed by a rally in energy company trade and despite a new government policy targeting the real estate sector in hopes of keeping skyrocketing prices under control.
But the new policy, which call for higher mortgage down-payments and a curb on the number of apartments bought, could convince investors to change gear and move their investments into the stock markets.
More than 20 cities including Beijing, Shanghai, Shenzhen and Nanjing announced these measures.
Stock markets in China were also given an edge up following a report over the weekend from the Caixin/Markit services purchasing managers’ index (PMI) which showed that the services sector had created jobs at the fastest pace in seven months in September.
The Caixin manufacturing survey focuses on some 420 smaller, private companies.
It showed that the services PMI slipped fractionally to 52.0 in September on a seasonally adjusted basis from 52.1 in August.
However, the reading is above the neutral 50-point level, signalling an expansion in the services sector.
The BRICS Post with inputs from Agencies
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