China data boosts world stocks and commodities

World
Europe

A total of 28 new small and medium-sized enterprises debuted on China's National Equities Exchange and Quotations (NEEQ), also known as the "new third board," last week.

The newcomers brought the total number of companies on the board to 11,608, the NEEQ data shows. Turnover on the board stood at 3.14 billion yuan (about 476 million US dollars) last week, down from 4.82 billion yuan the previous trading week.

The ChiNext Index, China's NASDAQ-style board, lost 2.25 percent to close at 1,882.69. Combined turnover on the two bourses stood at 545.9 billion yuan (83 billion US dollars), up from 458.6 billion yuan the previous trading day.

Boosted by upbeat of the Chinese stock data, the world stocks and commodities rose on Monday. Asian shares rallied to a decade-high after figures showed China’s producer prices beat market expectations to rise by 6.9 percent in September from a year earlier.

Chinese stocks closed lower Monday, dragged down by the environmental protection and oil sectors. /VCG Photo

“Further gains in Asia and the relentless march higher in US equities have provided the impetus for European equity markets to push forward,” said Rebecca O‘Keeffe, head of investment at Interactive Investor.

Chinese stocks closed lower Monday, dragged down by the environmental protection and oil sectors. The benchmark Shanghai Composite Index fell by 0.35 percent to close at 3,378.8. The Shenzhen Component Index closed 1.12 percent lower at 11,271.2.

Investors were cautious although China released upbeat producer price inflation (PPI) figures Monday. The PPI unexpectedly accelerated to a six-month high in September.

The PPI, the cost of goods at the factory gate, was up by a forecast-beating 6.9 percent year-on-year in September, according to the National Bureau of Statistics.

Since September, the Chinese PPI climbed 6.5 percent, which seems to be an encouraging sign for an economy to seek to renew growth momentum amid lingering downward pressures. /VCG Photo

Since September, the Chinese PPI climbed 6.5 percent, which seems to be an encouraging sign for an economy to seek to renew growth momentum amid lingering downward pressures.

The IMF last week upgraded its global economic growth forecast for 2017 by 0.1 percentage points to 3.6 percent, and to 3.7 percent for 2018. From April and July, the outlook was driven by a pickup in trade, investment and consumer confidence.

Forecasts for the euro zone, Japan, China, emerging market Europe and Russia were all revised upwards.

The Chinese NEEQ was launched in early 2013 to supplement the Shanghai and Shenzhen stock exchanges in serving small and medium-sized enterprises. It is seen as an easy financing channel for small businesses with low costs and simple listing procedures.

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