Chinese Equities Rise 0.23% as Services PMI Expands to 51.1

Key Moments:

Domestic Markets Extend Gains

Chinese stock markets posted further gains on Thursday, buoyed by continued expansion in the services sector. The Shanghai Composite Index (SSE Composite) added 0.23% and finished today’s trading session at 3,384.10. The tech-heavy Shenzhen Component Index performed even better by climbing 0.58%, which translated to a gain of 58.92 points that saw the index reach 10,203.50.

A key indicator of China’s services industry improved in May, marking its 29th consecutive month of growth. May witnessed the Caixin China General Services Business Activity Index rise to 51.1, up from the 50.7 reported in April. This signaled faster expansion despite ongoing pressure from tariff policies that contributed to falling new export orders.

Separately, media giant Bloomberg News reported that electricity rates in China’s major production zones declined, driven by falling coal prices and a surge in green energy supply. The easing of power costs provided some relief for manufacturers still dealing with repercussions from the prolonged trade conflict with the United States.

Component Highlights

Shengyi Electronics and Beijing Qingcloud Tech outperformed the rest of the components of the SSE by rising around 20% during the session. The former’s price reached 38.27 yuan, while the latter closed at 59.03 yuan. Suzhou Recodeal Interconnect System also advanced substantially by climbing 16.49%. Meanwhile, Huitong Construction Group and Times Publishing and Media were among the various companies that surged by around 10%. Chengdu Zhimingda Electronics, on the other hand, saw its shares plummet 31.81% to 29.15 yuan.

In addition, two companies made strong debuts on the Chinese stock markets on Thursday. Shenzhen UUGreenPower, a supplier of components for new energy vehicle charging infrastructure, soared 68.64% to 151.10 yuan by the end of its first trading session. Zhongce Rubber, a tire manufacturing firm, also closed its first session higher by climbing 6.84%. The company priced its initial public offering at 46.50 yuan per share.