SHANGHAI: China stocks rose on Monday, after a private sector survey showed China’s manufacturing activity grew at the fastest pace in more than three years.
Hong Kong market was closed for a holiday on the day, while the broader Asian stocks were subdued as traders pondered over the U.S rates outlook.
Yields on China’s 10-year and 30-year treasuries rose, after China’s central bank said it would borrow treasury bonds from some primary dealers in open market operations in the near future, in what traders and analysts believe is a move to stabilise plummeting yields.
The Caixin/S&P Global manufacturing PMI rose to 51.8 in June from 51.7 in the previous month, marking the fastest clip since May 2021 and surpassing analysts’ forecasts of 51.2, indicating the health of the sector remained robust.
However, the figure contrasted with an official PMI released on Sunday that showed a decline in manufacturing activity, keeping alive calls for further stimulus as the economy struggles to get back on its feet.
Prices of new homes in China climbed at their slowest pace in five months in June, a private survey showed on Monday, with a recent major government package of support measures for the country’s ailing property sector having only a limited impact so far.
At the close, the Shanghai Composite index was up 0.92% at 2,994.73.
The blue-chip CSI300 index was up 0.48%, with its financial sector sub-index higher by 1.04%, the consumer staples sector down 0.57%, the real estate index up 5.76% and the healthcare sub-index up 0.01%.
The smaller Shenzhen index ended up 0.77% and the start-up board ChiNext Composite index was unchanged.
Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.05%, while Japan’s Nikkei index closed up 0.12%.
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