Factory hit for stocks as Xi talks recovery
Imogene Wong and agencies
Thursday, September 24, 2015
China's preliminary purchasing managers' index sank to the lowest level since March 2009, prompting falls in Asian and emerging-market stocks.
The Caixin Media and Markit Economics' manufacturing purchasing managers' index fell to 47 in September, the lowest level since the global financial crisis and below market expectations of 47.5 and August's final 47.3 reading. Levels below 50 signify a contraction.
China's factory activity has now shrunk for seven months in a row, and the latest survey showed conditions deteriorated by almost every measure, with companies cutting output, prices and jobs at a faster pace as orders fell.
Mainland stocks trading in Hong Kong slid the most in three weeks and the Hang Seng Index closed at 21,302, down 2.26 percent. The Shanghai Composite Index fell 2.2 percent to 3,115.
That came despite President Xi Jinping saying in a US speech that mainland stocks have reached a "phase of self- recovery and self-adjustment."
CITIC Securities (6300) dropped more than 4 percent as insiders said a probe uncovered evidence to suggest it was engaged in insider trading connected to state support for the equity market.
Macau casino shares fell after Deutsche Bank said gaming revenue was hurt last week due to a move by junket operators to reduce credit to high- end gamblers.
The yuan in Hong Kong dropped as much as 0.42 percent, the most since September 2, before it traded at 6.4282, down 0.33 percent. But it trimmed losses due to intervention by state banks, sources told Reuters. The spot rate in Shanghai weakened 0.13 percent to 6.3840.