SHANGHAI, Sept 30 China stocks ended a
thinly-traded week with modest gains on Friday after a private
survey suggested domestic and export demand may be slowly
The blue-chip CSI300 index rose 0.3 percent to
3,253.28, while the Shanghai Composite Index gained 0.2
percent to 3,004.70 points.
But for the month, CSI300 dropped 2.2 percent while SSEC was
down 2.6 percent, its worst monthly performance since January.
For the quarter, CSI300 was up 3.2 percent, while SSEC rose
Chinese factory activity expanded in September as orders
ticked up, though the improvement was marginal and manufacturers
continued to shed jobs, a private business survey by
Caixin/Markit showed on Friday.
The report followed a spate of August data that suggested
China's economy is stabilising and perhaps even improving thanks
to a government infrastructure building spree and a booming
"This suggests that the positive momentum seen in the
activity and inflation data over the past few months will likely
be sustained," Julia Wang, HSBC's Greater China economist, said
in a note.
China's financial markets will be closed all of next week
for "Golden Week" holidays, which has sapped turnover this week.
But some investors are betting on a post-holiday bounce due to a
number of factors.
Demand for yuan-denominated assets may pick up after the
formal inclusion of the yuan in the International Monetary
Fund's SDR reserve basket from Oct. 1, traders said.
That could ease depreciation pressure on the yuan currency
and related fears of renewed capital outflows.
Growing restrictions on heated property markets imposed by
city governments across China could also see some money move
back into the stock market, traders said.
Most sectors rose, with property and consumer
stocks leading the gains.
(Reporting by Samuel Shen and John Rutwitch; Editing by Kim