Daily Report | Chinese stocks checked with upbeat economic news crossed by ratings downgrade
Chinese and Hong Kong stocks held in place after producer data beat expectations and Standard & Poor’s cut China’s credit rating outlook to negative
Chinese and Hong Kong stocks were held in place on Friday by better-than-expected manufacturing data for March that counterbalanced credit risk concerns after ratings agency Standard & Poor’s lowered China’s credit outlook to negative from stable.
The Shanghai Composite Index underwent a ‘V’ shape rebound to end 0.19 per cent, 5.61 points, higher at 3,009.53, reversing the morning’s loss. The CSI300 Index inched up 0.12 per cent, 3.81 points, to 3,221.89.
The Shenzhen Composite Index slid 0.56 per cent, 10.69 points, to 1,901.52. The Nasdaq-like ChiNext Index fell 1.47 per cent, 32.92 points, to 2,205.37.
The Hang Seng Index fell 1.34 per cent, 277.78 points, to 2,0498.92 with the drop led by insurers and retailers. It was the greatest intraday loss since February 25. The Hang Seng China Enterprises Index declined 1.78 per cent, 160.39 points, to 8,842.86.
China’s official data showed on Friday that PMI rose to 50.2 in March from 49.0 in February and beat estimates of 49.3 from a Reuters poll of analysts. It was the first time since July that the gauge exceeded the 50 mark. A measure above that level shows growth, below it, contraction.
The privately-produced Caixin manufacturing PMI rose to a 13-month high of 49.7 in March, well above a 48.3 estimated by market analysts.