China Equities Up Despite PMI Data

Chinese shares rose on Monday, with defence and media names leading the gains, shrugging off a lower-than-expected official Purchasing Managers’ Index (PMI) that added to signs of softness in the economy.

Hong Kong’s benchmark index also started the month on a firmer footing as some heavyweight stocks regained momentum after falling last week, but the H-share index fell a bit.  China’s official PMI slipped from a 27-month high to 51.1 in August, the government said on Monday, just short of the median forecast of 51.2 in a Reuters poll.

By midday, the Hang Seng Index had inched up 0.2 percent to 24,784.56. The China Enterprises Index of the top Chinese listings in Hong Kong was off 0.3 percent.  The CSI300 of the leading Shanghai and Shenzhen A-share listings added 0.4 percent, while the Shanghai Composite Index was up 0.6 percent at 2,229.55.

Reuters

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