Mainland China share market finished session lower on Wednesday, 03 April 2024, extending yesterday slide, on tracking regional peers decline, as powerful earthquake in the region raised concerns about possible disruptions to the vital chip-making industry.
At close of trade, the benchmark Shanghai Composite index dropped 0.18%, or 5.66 points, to 3,069.30. The Shenzhen Composite Index, which tracks stocks on China’s second exchange, sank by 0.66%, or 11.73 points, to 1,767.97. The blue-chip CSI300 index dropped by 0.36%, or 12.88 points, to 3,567.97.
China’s Business Activity Grows Fastest Since May 2023- March PMI data revealed that China’s service economy further expanded at the end of the first quarter of 2024. Moreover, the pace of business activity growth accelerated in March with new business rising at the quickest rate in the year-to-date.
Business confidence also improved, although employment levels declined amid evidence of reduced capacity pressures. Input cost inflation across China’s service sector meanwhile eased in the latest survey period, resulting in average selling prices rising at a slower pace.
The seasonally adjusted headline Caixin China General Services Business Activity Index rose to 52.7 in March, up from 52.5 in February, to signal an increase in services activity for the fifteenth month in a row. Faster new business growth underpinned the latest acceleration of services activity expansion. Export business also increased at a slightly faster rate in March.
Chinese services companies were enthused by the latest growth in services activity and maintained a positive outlook with regards to business activity in the next 12 months. Employment levels declined for a second successive month in March, though the rate of job shedding eased from February and was only marginal. Price pressures meanwhile eased across China’s service sector in March.
The Composite Output Index rose to 52.7 in March from 52.5 in February, to signal an expansion of overall Chinese business activity for the fifth consecutive month and at the most pronounced rate since May 2023. Underlying data revealed that both manufacturing output and services activity expanded at quicker rates compared to February. Composite new orders growth picked up in March, supported by the quickest expansion in export orders growth in 13 months. Meanwhile employment levels declined marginally for a second straight month.
