Shanghai: Manufacturing and transport related stocks in Greater China surged yesterday on the back of more than one sign the China export machine is now back and running.
CLSA's China Purchasing Managers' Index (PMI), a key gauge of China's manufacturing sector, rose to a one-year high in July of 52.8 from 51.8 in June.
The positive PMI also suggests that export orders rose last month. The index above 50 indicates expansion. A separate government index of purchasing manager's also increased to 53.3 in July from 53.2 in June. Shares in freight companies rose. China Cosco and China Shipping Container Lines both rose 10 percent on both the Shanghai and Hong Kong bourses. Cosco's port operating company Cosco Pacific soared 17.9 percent while Shanghai Port soared 4.8% to 6.37 yuan. Both indexes also point to a resilient healthy domestic consumption, a fact boosted by the results yesterday from China Vanke, the country's leading property retailer, whose interim profit jumped 22%. [04/08/09]
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