China shares post mixed showings following less shiny PMI results

China's equities markets finished the day in different directions on Tuesday, after the country announced that factory activity data fell short of expectations for July. 

China’s equities markets finished the day in different directions on Tuesday, after the country announced that factory activity data fell short of expectations for July.

The Shanghai Composite Index moved into positive territory on the back of rises of financial and state-owned enterprises' reform related stocks to close higher by 0.26 percent, or 7.35 points, at 2876.40, marking the end of four straight days of decline.

The Shenzhen Component Index edged down by 0.03 percent to 9178.78 points, while the Nasdaq-style ChiNext enterprise board inched up by 0.10 percent to finish at 1561.26.

The National Bureau of Statistics reported on Tuesday that the country’s official manufacturing Purchasing Manager's Index (PMI) came in at 51.2 for July, which was slightly lower than the expected reading of 51.3 by a Reuters’ poll.

The PMI readings in July were affected by adverse weather, escalated global trade tensions and other seasonal factors, according to industry insiders.

Buoyed by Monday’s announcement from the State Council, or China’s cabinet, that it will promote state-owned capital to participate in the investment and operation of corporate reforms, Phoenix Optical Group Co Ltd, a Jiangxi-based optical lens manufacturer and also the country’s first listed company in the optical industry, saw its shares surge by the daily maximum cap of 10 percent to close at 12.61 yuan (US$1.85).

ZheShang Securities noted that despite recent positive policy measures, there will be further bounce amid lingering volatilities in the market, as the downward trend of the economy has not been reversed yet.


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