24 Mar 2015
Shanghai Composite in red after HSBC flash PMI disappoints – TradeTheNews
FXStreet (Barcelona) - The TradeTheNews Team updates about the key developments in the Chinese markets – HSBC flash PMI release and its impact on Chinese equities.
Key Quotes
“Shanghai Composite is headed for its first losing session in 10 days after a surprisingly disappointing HSBC flash PMI. Manufacturing was expected to expand for the 2nd consecutive month but instead plunged into contraction, falling to its lowest level in 11 months.”
“HSBC economist cited a renewed fall in total new business and workforce reduction, along with falling import prices as a result of oil-driven disinflation.”
“Separately, the stronger rise in Jan China Conference Board leading index was attributed to the Lunar New Year demand.”
“Local press also speculated Shanghai would allow home buyers using Housing Provident Fund to borrow up to 50% more than under previous quota in a bid to prop up prices after a disappointing property sector report last week.”
Key Quotes
“Shanghai Composite is headed for its first losing session in 10 days after a surprisingly disappointing HSBC flash PMI. Manufacturing was expected to expand for the 2nd consecutive month but instead plunged into contraction, falling to its lowest level in 11 months.”
“HSBC economist cited a renewed fall in total new business and workforce reduction, along with falling import prices as a result of oil-driven disinflation.”
“Separately, the stronger rise in Jan China Conference Board leading index was attributed to the Lunar New Year demand.”
“Local press also speculated Shanghai would allow home buyers using Housing Provident Fund to borrow up to 50% more than under previous quota in a bid to prop up prices after a disappointing property sector report last week.”