Shanghai Composite hits nearly four-month high as gauge shows better-than-expected expansion by private factories in June

Caxin/Markit manufacturing PMI rises to 51.2 in June, as economy continues to show signs of recovery

Hong Kong market is closed for a one-day holiday; traders digesting national security law details

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Shanghai’s benchmark rose to a near four-month high Wednesday on the latest data signalling steady economic recovery. Here, pedestrians wearing protective masks ride up an escalator by a stock price board in Shanghai. Photo: Reuters

Published: 10:31am, 1 Jul 2020Updated: 6:15pm, 1 Jul 2020

China stocks rallied on the first day of the third quarter, with Shanghai’s benchmark closing at its highest level in nearly four months, as a gauge of smaller private manufacturers showed better-than-expected expansion and the central bank lowered interest rates.

The Shanghai Composite Index on Wednesday advanced 1.4 per cent to 3,025.98, which was its highest close since March 6.

The Shenzhen Composite Index climbed 1 per cent to 1,2112.96. The Nasdaq-like tech board ChiNext declined 0.8 per cent, but tumbled as much as 2 per cent after it had surged to a four-year high on Tuesday.

The trading volume of the stock markets in Shanghai and Shenzhen reached 900 billion yuan, which was the highest level in three and a half months, according to Wind Information, as investor sentiment has picked up on a stream of economic data pointing to slow but steady economic recovery in the world’s second-largest economy.

The Hong Kong stock market was closed for a one-day holiday recognising the British handover of the city to China in 1997.

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