SSE Composite index closes higher as China services sector grows

<p>China’s key benchmark closed higher as the services sector expands.</p>

The SSE Composite index in Shanghai finished on a positive note this morning (February 5th), after one purchasing managers' index (PMI) indicated the country's services sector has expanded.

According to HSBC's closely-monitored PMI, its services sector reading rose to 54 from 51.7 in December.

PMIs work in such a way that any figure higher than the benchmark of 50 indicates growth, therefore China's services sector expansion is gaining pace.

The HSBC China Composite Output Index rose to 53.5 in January from 51.8 the previous month and Markit added that the growth rates of new business also rose over both the manufacturing and services sectors.

Qu Hongbin, chief China economist for HSBC in Hong Kong, said: "China's growth recovery is now on a firmer footing. Still-solid job gains plus higher business expectations bode well for further improvement of services sectors' growth."

At close of play today, the Shanghai SSE Composite advanced by 0.2 per cent to an index value of 2433.1 points.

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