Chinese Stocks Extend Gains Despite Weak Caixin PMI Data
Tang Shihua
/SOURCE : yicai

(Yicai Global) Feb. 1 -- China's stock markets  extended gains after a strong opening this morning despite the latest  economic data showing that the nation's manufacturing sector remains in  contraction.

The trading volume has been relatively light as  today is the last trading day before the Chinese New Year holiday. The  benchmark Shanghai Composite Index went into lunch 0.77 percent higher  at 2,604.57 points while the Shenzhen Component Index gained 1.74  percent at 7,609.15. Small-cap technology-related stocks have been the  strongest performers so far today with the ChiNext Price Index,  Shenzhen's growth enterprise tracker, up 2.35 percent at 1,256.89.

China's Caixin Manufacturing Purchasing Managers'  Index for January slid to its lowest point since February 2016,  indicating that business performance among the country's small  enterprises is below expectations and they remain in contraction.

Investors took the less-than-ideal economic data in  their stride, partly because the latest round of China-US trade talks  made "important progress," according to the state-backed Xinhua News  Agency. The two sides enjoyed "candid, specific and fruitful"  discussions.

The two sides have also made a timetable and plan for the next round of negotiations, according to Xinhua.

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Keywords: Stock Markets , Shanghai Composite Index , Shenzhen Component Index , ChiNext Price Index