Major indexes in the Chinese stock market experienced gains on September 1st, thanks to the Chinese government’s stimulus measures and positive Caixin Manufacturing Purchasing Managers’ Index (PMI) data. The Shanghai Composite Index closed at 3,133.25, up 13.37 points or 0.43%, while the Shenzhen Composite Index closed at 1,953.58, up 6.10 points or 0.31%.
The energy and materials sectors saw significant increases in both stock markets. The Chinese authorities’ decision to implement stimulus measures, such as easing housing purchase requirements, coupled with the expansionary period reported by the August Caixin manufacturing PMI, boosted investor sentiment.
The People’s Bank of China and the State Administration for Financial Supervision announced that the minimum down payment for first-time home buyers would be capped at 20%, and for second home buyers, it would be capped at 30%. Experts believe that these actions will help improve liquidity in the market.
Furthermore, financial institutions were urged by authorities like the People’s Bank of China to lower interest rates on mortgages and deposits. Responding to this request, several major banks, including the Bank of China (BOC), reduced deposit rates.
The August Caixin Manufacturing PMI surpassed market expectations by recording a reading of 51.0, indicating an expansionary period. This positive result also contributed to the rise in the stock market index. Previously, the PMI stood at 49.2.
To provide liquidity, the People’s Bank of China purchased 7-day reverse repurchase agreements (reverse repo agreements) worth 101 billion yuan.
The offshore dollar-yuan exchange rate initially plummeted following the People’s Bank of China’s decision to reduce its foreign currency reserve ratio. However, it recovered some of the decline and was trading at 7.2656 yuan, a 0.11% decrease from the previous level as of 4:02 pm.
This article was submitted on the Infomax financial information terminal two hours before its publication at 16:07.
(Note: This edited version has been reformatted for a newspaper and meets professional journalistic standards.)
Shanghai Composite Index
(Seoul = Yonhap Infomax) Reporter Hong Ye-na = All major indexes in the Chinese stock market closed higher on the 1st. The Chinese government’s announcement of stimulus measures and the Caixin Manufacturing Purchasing Managers’ Index (PMI) are understood to have led to an influx of buying.
According to the Yonhap Infomax World Stock Index screen (screen no. 6511), the Shanghai Composite Index closed at 3,133.25, up 13.37 points (0.43%), and the Shenzhen Composite Index closed at 1,953.58, up 6.10 points (0.31%).
In both stock markets, energy and materials sectors rose relatively sharply.
Investor sentiment improved as Chinese authorities announced stimulus measures, including easing housing purchase requirements, and the Caixin manufacturing PMI showed an expansionary period in August.
China’s central bank, the People’s Bank of China and the State Administration for Financial Supervision previously announced that the minimum down payment for first-time home buyers and second home buyers would be capped at 20 percent and 30 percent, respectively. Experts noted that the actions of the authorities could help ease liquidity.
Authorities such as the People’s Bank of China have asked financial institutions to lower interest rates on mortgages and deposits. Several major banks, including the Bank of China (BOC), cut deposit rates at the request of authorities.
In addition, China’s Caixin Manufacturing PMI recorded 51.0 in August, breaking market expectations and ushering in an expansionary period, which also contributed to the index’s rise. The PMI presented was 49.2.
On this day, the People’s Bank of China supplied 101 billion yuan of liquidity by purchasing 7-day reverse repurchase agreements (reverse repurchase agreements).
The offshore dollar-yuan exchange rate plunged after the People’s Bank of China decided to cut its foreign currency reserve ratio, but reversed some of the decline. As of 4:02 pm, the offshore dollar-yuan exchange rate was trading at 7.2656 yuan, down 0.11% from the previous level.
ynhong@yna.co.kr
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This article was submitted at 16:07, 2 hours earlier on the Infomax financial information terminal.
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