China: Stocks rise, lifted by strong official PMI

[SHANGHAI] Chinese stocks snapped a four-session losing streak on Tuesday, after an official survey showed the country's manufacturing sector expanded at a faster pace than expected in October.

The blue-chip CSI300 index and the Shanghai Composite Index both gained 0.7 pct, to 3359.05 points and 3,122.44 points, respectively.

The official Purchasing Managers' Index (PMI), a measure of manufacturing activity, stood at 51.2 in October, the fastest pace in over two years, compared with the previous month's 50.4 and above the 50-point mark that separates growth from contraction.

The fresh data adds to recent signs that the world's second-largest economy is stabilising thanks to a construction boom. "Economic restructuring takes time... and there is not much fresh money inflows into the China market, so the index will be relatively stable, but there are structural opportunities," said Jie Lu, head of China research at the Rotterdam-based asset management firm Robeco.

Mr Lu said he saw opportunities in the consumerhigh-tech and environmental protection sectors.

Most sectors rose, led by a strong rally in property stocks , helped by news that China Evergrande Group has further boosted its stake in peer property developers Langfang Development and Vanke .

Guangzhou Automobile Group's shares in Shanghai closed 3.3% higher in volatile trading, as it planned to raise no more than 15 billion yuan to fund projects related to new energy vehicles and other areas.

REUTERS