Chinese stocks moved higher on Thursday after fresh purchasing managers’ index data pointed to stronger activity across parts of the economy.
The Shanghai Composite and Shenzhen Component both advanced, reversing losses from the previous two sessions. The rebound followed an improvement in private-sector PMI readings for August.
China’s private Composite PMI rose to 52.1 from 50.8, while the services PMI increased to 51.4 from 50.4. Manufacturing also strengthened, with the private manufacturing PMI rising to 51.5 from 50.9. Readings above 50 indicate expansion.
Official data remained weaker but also improved. The official Composite PMI increased to 49.5 from 49.3, while the manufacturing PMI rose to 49.8 from 49.2. The figures remain below the 50 level that separates expansion from contraction, but the monthly improvement reduced some concern around the pace of domestic activity.
Property shares were among the stronger areas of the market after several sessions of weakness. The sector remains important to the wider economic outlook because continued pressure in property has weighed on confidence and growth. Any sustained stabilisation would reduce one of the main domestic risks facing Chinese equities.
Technology and industrial stocks also gained. Foxconn Industrial Internet, SMIC, Eoptolink Technology and Weichai Power were among the stronger names during the session, showing that the rebound extended beyond property.
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