Published By : 01 Sep 2015 | Published By : QYRESEARCH
China’s stocks have declined since 2008. These three-year low and growing concerns about the government intervention to increase equities are expected to fail.
The stocks extended the biggest two-month tumble, after an official factory suspected slump.
The SCI (Shanghai Composite Index) declined 1.2% to 3,166.62 at the close. This incurred a loss of 4.8%. Some other aspects that fueled the stock market were rallies for oil shares and large bank. This increased with more than 1,000 companies in the Shenzhen and Shanghai stocks bumping by 10% daily limit.
Purchasing Managers’ Index was 49.7 for the month of August. The numbers trading below 50 indicate contraction. However, progress in the manufacturing still shows shallow signs of economy. The market will not speed up anytime soon.
The SCI closed near to the highest level of the day for the fourth session. The state-backed funds are utilizing share purchases to boost the market before the WWII victory parade this week.
Industrial and Commercial Bank of China Ltd., and PetroChina Co. increased 3%.
According to a strategist at Delta Asia Securities Ltd, investors may look for government intervention. The government revived all the intervention in equities on Thursday in the effort to support markets to ensure nothing detracts from the parade.
Moreover, the CSI 300 Index declined 0.1%, while the Hang Seng slipped by 2.2%. ChiNext Index tumbled by 5.4%.
The Chinese factory gauge declined to the lowest reading in three years as five interest-rate cuts ever since November fail.
ICBC advanced 7.4%, erasing a 0.5% loss. PetroChina boosted 3% and China Construction Bank Corp. increased 8.7%.
Mainland shares trade at an expensive level to their Hong Kong peers, added gauge tracking the price gap of the two markets.
China will encourage listed companies to conduct mergers and acquisitions. These measures are aimed at boosting the investment value of listed companies and promoting stable and healthy growth of capital markets.