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China’s markets rise on new securities rules
May 31, 2017, 2:19 pm

The purchasing managers’ index (PMI) for the manufacturing sector rose for the 10th consecutive month [Xinhua]

China’s securities regulator intervened in the stock market earlier this week and announced a slew of new rules and provisions to protect small investors from the practice of dumping stocks, which left the exchanges dealing with often irregular trade.

The new regulations will affect the sale of stock by major shareholders.

The intervention – along with other positive economic data – helped prop China’s exchanges up when they reopened on Wednesday after a three-day holiday.

The benchmark Shanghai Composite Index rose 0.23 per cent adding to gains made last week despite Moody’s rating downgrade and closed at 3,117 at the end of trading Wednesday.

Meanwhile, the Shenzhen Component Index closed 0.06 per cent higher at 9,864.84.

The markets were also boosted by new figures from the National Bureau of Statistics (NBS) that the manufacturing purchasing managers index expanded once again reaching 51.2.

Although it slowed from May’s PMI of 54.5, the new figures show continued expansion in that sector and are attributed to the general good health of the economy.

The BRICS Post with inputs from Agencies

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