INSUBCONTINENT EXCLUSIVE:
SHANGHAI: China stocks firmed on Tuesday, after a private survey showed the services sector expanded at a steady pace in May, while
pharmaceutical sector gained the most.
The blue-chip CSI300 index rose 1.0 per cent to 3,845.32, while the Shanghai Composite Index ended up
China's services sector expanded at a solid pace last month, with companies accelerating hiring on the back of the strongest optimism for
future growth in 11 months, the survey showed.
Sentiment also got a boost after Moody's Investors Service said China's economic
restructuring is picking up pace, with its manufacturing sector showing signs of a shift to higher value-added areas - a credit positive
"If such measures lead to a reallocation of labour and capital resources that shift credit towards sectors with higher productivity growth,
it will support the Chinese government's credit quality by increasing its debt-carrying ability," Marie Diron, managing director of
Moody's Sovereign Risk Group, said at a conference in Beijing.
On trade development, China said its door to talks was open in principle, a
day after Beijing warned that any trade and business deals reached with Washington would be void if the United States implemented
tariffs.
Sector performance was mixed on Tuesday
Gains were led by pharmaceutical firms, with bellwether Jiangsu Hengrui Medicine ending 5.9 per cent higher at a new peak
Mainland firms involved in Apple's supply chain rallied strongly, encouraged by Apple shares hitting their highest ever due to investor
bets on its annual developers conference
Zhejiang Crystal-Optech led the climb with a 10 per cent rise, while Shenzhen Sunway Communication closed up 9.3 per cent
Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.12 per cent while Japan's Nikkei index closed up 0.28 per cent
At 06:59 GMT, the yuan was quoted at 6.4063 per US dollar, 0.06 per cent weaker than the previous close of 6.4027.
The largest per centage
gainers in the main Shanghai Composite index were Guodian Nanjing Automation Co Ltd up 10.11 per cent, followed by Neusoft Corp gaining
10.04 per cent and Zhejiang XinAn Chemical Industrial Group Co Ltd up by 10.03 per cent.
The largest per centage losses in the Shanghai
index were LONGi Green Energy Technology Co Ltd down 9.99 per cent, followed by Tongwei Co Ltd losing 9.97 per cent and Shanxi Coal
International Energy Group Co Ltd down by 9.89 per cent
So far this year, the Shanghai stock index is down 5.8 per cent, the CSI300 has fallen 4.6 per cent while China's H-share index listed in
Hong Kong is up 4.7 per cent
Shanghai stocks have risen 0.61 per cent this month
As of 07:00 GMT, China's A-shares were trading at a premium of 18.61 per cent over the Hong Kong-listed H-shares.
