Chinese Purchasing Managers' Index stableStaff writer ▼ |
China's benchmark Shanghai Composite Index of stocks rose 3.7 per cent in November, the biggest monthly gain since August, on optimism that the reform package outlined by Communist Party leaders on November 15 will bolster the economy and corporate earnings. Gauges in the CSI 300 tracking industrial, technology and material producers rallied more than 4 per cent while utilities declined.
Economists estimate growth in gross domestic product will slow to 7.5 per cent next year from 7.6 per cent this year, according to the median projection in Bloomberg News surveys last month. The government set a target for 7.5 per cent expansion in 2013 and Premier Li Keqiang said in October that China needs annual growth of 7.2 per cent to keep unemployment stable.
The PMI survey from the statistics bureau and logistics federation is based on responses from purchasing managers in 3,000 manufacturing companies. The HSBC survey is based on responses from managers at more than 420 businesses, and is weighted toward smaller private companies. Levels above 50 signal expansion in manufacturing while readings below point to a contraction.
A gauge of output in the new survey rose to 54.5 from 54.4 in October, while a new orders index declined to 52.3 from 52.5. A measure of new export orders increased to 50.6 from 50.4 and an employment index rose for a second month to 49.6, the highest level since March. ■