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China stocks climb on upbeat services sector survey, sharp HK gains

Activity in China's services sector expanded at the fastest pace in three months in August as new orders rose, prompting the biggest increase in hiring in over a year, a private survey showed.

By: Reuters | Shanghai | Published: September 4, 2019 3:48:16 pm
China stocks climb on upbeat services sector survey, sharp HK gains “China’s economy showed clear signs of a recovery in August, especially in the employment sector,” Zhong Zhengsheng, director of macroeconomic analysis at CEBM Group, said in a statement. (Source: File)

China stocks closed higher on Wednesday, bolstered by a private survey showing an upbeat services sector and helped by sharp gains in Hong Kong following reports the government would formally withdraw the proposed extradition bill.

The blue-chip CSI300 index rose 0.8%, to 3,886.00, while the Shanghai Composite Index ended up 0.9%, at 2,957.41.

Activity in China’s services sector expanded at the fastest pace in three months in August as new orders rose, prompting the biggest increase in hiring in over a year, a private survey showed.

“China’s economy showed clear signs of a recovery in August, especially in the employment sector,” Zhong Zhengsheng, director of macroeconomic analysis at CEBM Group, said in a statement.

The survey helped offset worries over the more than year-long trade dispute between the world’s two biggest economies.

US President Donald Trump on Tuesday warned he would be “tougher” on Beijing in a second term if trade talks dragged on, compounding market fears that ongoing trade disputes could trigger a US recession.

Sentiment was also boosted by robust gains in Hong Kong stocks, which surged more than 3% in afternoon session.

Hong Kong leader Carrie Lam will announce on Wednesday the formal withdrawal of an extradition bill that triggered months of unrest and has thrown the Chinese-controlled city into its worst crisis in decades, Cable TV and other media said.

Around the region, MSCI’s Asia ex-Japan stock index was firmer by 1.49%, while Japan’s Nikkei index closed up 0.12%.

At 07:17 GMT, the yuan was quoted at 7.163 per US dollar, 0.22% firmer than the previous close of 7.1788.

The largest percentage gainers in the main Shanghai Composite index were Ningxia Jiaze Renewables Corp Ltd , up 10.07%, followed by Bank of Xi’An Co Ltd , gaining 10.04%, and Guangdong Ellington Electronics Technology Co Ltd, up by 10.04%.

The largest percentage losers in the Shanghai index were People.cn Co Ltd, down 7.32%, followed by Xinhuanet Co Ltd, losing 5.92%, and Shandong Pharmaceutical Glass Co Ltd, down by 5.91%.

As of 07:18 GMT, China’s A-shares were trading at a premium of 28.32% over the Hong Kong-listed H-shares.

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