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China shares recover amid hopes for incentive measures

UNITED STATES (OBSERVATORY NEWS) — Chinese stocks added more than 3% on Monday, as weak economic data strengthened hopes for Beijing’s new stimulus measures, while lowering the number of new cases of coronavirus infection improved market sentiment.

The Shanghai Composite Index rose 3.2%, while the Blue Chip Index CSI 300 gained 3.3%.

Chinese stocks fell on Friday and recorded the maximum monthly decline since May last year amid a sell-off in global markets due to fears of a coronavirus pandemic.

Chinese manufacturers suffered significant losses in February, as the coronavirus epidemic caused the sharpest decline in business activity in history, a private study published on Monday showed.

The Caixin / Markit Purchasing Managers Index (PMI) fell to 40.3 last month, the lowest level since the start of the study in 2004, from 51.1 in January.

The official Purchasing Managers Index (PMI), released on Saturday, fell to a record low of 35.7 in February from 50.0 in January. An index value above 50 points indicates an increase in activity, below – a decline.

The Hong Kong Hang Seng Index added 0.6% to 26.291.68 points, while the Hang Seng China Enterprises Index added 1.8% to 10.485.17 points.

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