China: Stocks end up, helped by service sector growth

[SHANGHAI] China stocks rose after a private survey showed more signs of economic stability on Thursday, with sentiment also spurred by the upcoming Shenzhen-Hong Kong Stock Connect scheme.

The blue-chip CSI300 index rose 1 per cent, to 3,365.09, while the Shanghai Composite Index gained 0.8 per cent to 3,128.94 points.

Earlier in the day, a private survey showed growth in China's services sector accelerated in October, reinforcing the view that the world's second-largest economy is on a steadier footing.

The Caixin/Markit services purchasing managers' index (PMI) rose to 52.4 in October on a seasonally adjusted basis from 52.0 in September, posting the strongest reading since June.

Investors are also responding to headline news that a global roadshow promoting the Shenzhen-Hong Kong Stock Connect scheme has been completed, pushing up shares of brokerages, betting they will benefit from the programme.

Most sectors advanced, led by infrastructure and financial stocks.

Big-cap, state-owned infrastructure stocks surged after a near 7-session breather, with China State Construction Engineering and China Communications Construction both soaring 10 per cent, the maximum allowed.

REUTERS