China stocks rally on strong factory activity
Chinese stocks started 2018 on a bullish note following a survey that showed better-than-expected manufacturing activity in December.
The Shanghai Composite Index closed up 1.24 percent at 3,348.33 points. Meanwhile, the bluechip CSI300 index was up 1.40 percent, with its financial sector sub-index higher by 2.05 percent, the consumer staples sector up 0.51 percent, the real estate index up 3.79 percent and the healthcare sub-index up 0.03 percent.
The smaller Shenzhen index ended 1.25 percent up and the start-up board ChiNext Composite Index was higher by 0.97 percent.
Hong Kong stocks rose to their highest levels in over a decade on Tuesday, aided by a surge in property shares as well as China’s H-share full convertibility reform, which is generally viewed as positive for Hong Kong-listed Chinese companies.
China’s securities regulator said on Friday it will launch a pilot scheme that allows mainland incorporated companies listed in Hong Kong to convert their non-tradable equity into free-floating shares.
Sentiment has also been buoyed by a private business survey showing growth in China’s manufacturing sector picked up to a four-month high in December as factories cranked up production to meet a surge in new orders.
The Caixin/Markit Manufacturing Purchasing Manager’s Index (PMI) rose to 51.5 last month from 50.8 in November, far outpacing economists’ expectations for a slight dip to 50.6.