China stocks boosted by improved PMI data

Combined turnover of Chinese shares rose substantially on Thursday boosted by data that showed growing factory activity in the world's second-largest economy. Combined turnover of the Shanghai and Shenzhen stock exchanges rose to 119.2 billion yuan (18.92 billion U.S. dollars) from 81.43 billion yuan the previous trading day. The benchmark Shanghai Composite Index gained 1.72 percent, or 35.55 points, to 2,104.43, while the Shenzhen Component Index closed at 8,663.15, up 193.35 points, or 2.28 percent. Gainers outnumbered losers by 928 to 32 in Shanghai and by 1,463 to 66 in Shenzhen. The purchasing managers' index (PMI), the main gauge for factory production, rose to 50.2 percent in October from 49.8 percent in September, according to data released by the China Federation of Logistics and Purchasing. The figure was above the 50-percent boom-or-bust line for the first time since July. As a result of the improved PMI data, most shares posted gains on Thursday. Property developers led the rises after they reported steady growth in their third-quarter profits. Eleven property shares, including Gree Real Estate Co. and Hua Yuan Property Co., rose by the 10-percent daily limit. Brokerages witnessed a strong performance as the China Securities Regulatory Commission considers widening the scope of investment asset classes under the self-operating businesses of brokers. Sinolink Securities Co. jumped 6.12 percent to close at 15.27 yuan, while Industrial Securities Co. climbed 4.59 percent to finish at 10.72 yuan. Rare earth and auto shares also rallied. Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co., the country's largest rare earth metal producer, moved up 8.75 percent to close at 30.96 yuan per share. SAIC Motor Corp., the biggest auto producer, increased 3.86 percent to finish at 13.46 yuan.