Chinese stocks fall as manufacturing gains momentum

<p>China’s major stock indices have fallen after two PMIs showed the country’s manufacturing sector is growing.</p>

The major Chinese stock benchmarks have slumped as the nation's manufacturing sector appears to be gaining pace, helping to alleviate fears the world's number two economy is experiencing a slowdown.

According to HSBC's purchasing managers' index (PMI) for the country, data soared to a 13-month high in November, while the official state-sanctioned report showed the best reading in seven months.

Today (December 3rd), the bank's PMI posted a reading of 50.5 – up from the previous month's 49.5 – while this weekend the official government PMI shot up to 50.6, compared to October's 50.2.

The PMI system works in such a way that all readings higher than 50 indicate growth, while those lower than this benchmark mean shrinkage. Therefore both PMIs show the manufacturing sector is enjoying expansion, albeit at a sluggish pace.

At close of play in China this morning, the Shanghai SSE Composite index shed 0.5 per cent to an index value of 1959.7 points, while the Hong Kong Hang Seng slid by 1.1 per cent to 21767.8 points.

Find out about the Chinese stock exchange and CFD trading at City Index.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.