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Bloomberg, (3/6) -- Most Chinese
stocks fell, led by financial, material and consumer-discretionary
companies. Property developers rose after new home prices jumped in May.
About five stocks dropped for every three that gained on the Shanghai Composite Index, which slipped 0.1 percent to 2,297.28 at 10:01 a.m. local time. The CSI 300 Index declined 0.2 percent to 2,601.94. The ChiNext Index of small companies slumped 1.1 percent. An official manufacturing index released on June 1 showed a pick-up in growth, rising to 50.8 in May from 50.6 in April, while a separate gauge today from HSBC Holdings Plc and Markit Economics signaled a contraction. “The government’s PMI is geared towards bigger companies and the HSBC one comprises smaller businesses,” said Mao Sheng, an analyst for Huaxi Securities Co. in Chengdu. “The fact that the HSBC PMI is lower also points to the possible weakness of small-company stocks.” China’s PMI report was higher than all estimates in a Bloomberg News survey of 30 analysts and compares with the median projection of 50, which marks the dividing line between expansion and contraction. HSBC today gave the final May reading of their manufacturing index, showing a decline to 49.2, the lowest since September, from 50.4 in April. The gauge, which surveys fewer companies and is weighted toward smaller, private businesses, had a preliminary figure of 49.6 released May 23. Separately, a government gauge of service industries today showed the slowest expansion since September. The non-manufacturing PMI for May declined to 54.3 from 54.5. “The mixed PMI results and the NBS’s new method for seasonal adjustment have made it difficult to gauge the strength of the economy,” Jian Chang, an economist at Barclays Plc. wrote in a note today. “We will wait for the full batch of May activity indicators, including trade and industrial production, to be released by 9th June, to review our GDP growth forecast.” The nation’s new home prices jumped in May by the most since they reversed declines in December, as the government’s efforts to tighten property curbs this year fail to deter buyers. Prices surged 6.9 percent from a year earlier to 10,180 yuan ($1,659) per square meter (10.76 square feet), SouFun, the country’s biggest real estate website owner, said in a statement today in a survey of 100 cities. |
Written by: Kontak Perkasa Futures
PT.Kontak Perkasa Futures, Updated at: 10:18 AM
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