China stocks extend gains as services PMI strengthens

Chinese markets continued their upward momentum on Wednesday, with the Shanghai Composite rising 0.22% to close at 4,083 and the Shenzhen Component gaining 0.73% to 15,705. Semiconductor and technology stocks led the rally, with notable gains from Cambricon Technologies (6.01%), Zhongji Innolight (6.98%), Eoptolink Technology (4.72%), SMIC (1.15%), and NAURA Technology (2.0%).

Investors showed confidence in AI-related shares despite concerns about high valuations, encouraged by expectations of strong earnings growth. On the economic front, a private survey revealed that China?s Composite PMI climbed to a three-month high of 54.0 in May. The services PMI was the main driver, rising to 54.4, also a three-month peak.

However, manufacturing momentum slowed, with the PMI easing to 51.8 from April?s five-year high of 52.2. This highlighted the uneven nature of China?s economic recovery, where services are providing stronger support compared to manufacturing.

Powered by Capital Market - Live News