Mainland blue-chips hit 19-month high

By Global Times – Reuters Source:Global Times - Reuters Published: 2017/8/1 18:57:54

Stocks on the Chinese mainland extended gains  Tuesday, with the blue chips reaching a 19-month peak.

Investors cheered a private survey of the country's factory growth in July.

The Caixin PMI rose 51.1 last month, picking up pace from June's 50.4 and well above the 50-point market that separates economic growth from contraction.

During the morning session, the blue-chip CSI300 index increased as high as 3,764.43 points, marking its highest level since December 2015. It closed up 0.87 percent at 3,770.38 points.

The benchmark Shanghai Composite Index advanced 0.60 percent to 3,292.64 points. In July, the blue chips gained 2.0 percent, while the Shanghai stocks added 2.5 percent.

In order to ease concerns that China's economic growth may get hurt amid its deleveraging efforts, the central bank has said that it will ensure the debt cutting process is carried out smoothly and orderly and limit the impact on market liquidity.

Shenzhen's tech-heavy start-up board ChiNext rebounded Tuesday, up 0.27 percent to 1,741.07 points after notching a loss of 4.5 percent in July.

But many analysts expect little prospect of a reversal of fortunes at those start-up stocks amid concerns over their falling profit growth and a fast pace of listing approvals, according to Reuters' report.

Financial sector led the advances, while the materials sector took a breather.

Posted in: MARKETS

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