Chinese manufacturing rises to 3-month high

<p>Chinese manufacturing has climbed out of contraction.</p>

Chinese manufacturing activity has climbed to a three-month high, assuaging economists' fears that the country's slowdown is accelerating.

According to the state-sanctioned China Federation of Logistics and Purchasing's monthly purchasing managers' index (PMI), October rose to 50.2 from September's 49.8.

The PMI system works in such a way that readings lower than 50 indicate contraction and those higher mean expansion – and therefore this latest PMI puts the world's second-largest economy's manufacturing sector back into a state of growth.

This report comes one week before a once-in-a-decade change in leadership, ending current premier Wen Jiabao's tenure on a positive note and starting his successor's rein on the right foot.

At 08:40 GMT today (November 1st), the Shanghai SSE Composite rose by 1.7 per cent to an index value of 2104.4 points and the Hong Kong Hang Seng was up by 0.8 per cent to 21821.8 points.

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