SHANGHAI stocks ended higher yesterday amid reports China's securities regulator may relax rules on foreign investment in the domestic capital market while data showing the country's manufacturing sector growing at the slowest pace in four months was ignored.
The Shanghai Composite Index added 0.5 percent to close at 2,325.82 points.
The China Securities Regulatory Commission will soon allow more foreign institutions to enter the Renminbi Qualified Foreign Institutional Investor scheme to invest in the domestic capital market with offshore yuan, Xinhua news agency said on Sunday. Only fund management companies and securities firms are now allowed in the scheme.
The CSRC will also scrap a rule requiring foreign investors to invest at least 80 percent of yuan funds in the bond market, with not more than 20 percent of funds in stocks, Xinhua said. The move will help more capital into the domestic securities market, Xinhua said.
The HSBC Flash China Purchasing Managers' Index, the earliest indicator of the country's economic conditions, fell to 50.4 in February, down from a two-year high of 52.3 in January, HSBC Holdings PLC announced yesterday.
"Despite the moderation, the index stayed above the 50 critical line for the fourth consecutive reading, indicating China's economy remains on track for a mild recovery," said Qu Hongbin, chief China economist for HSBC.
Brokerages rose as a pilot scheme to refinance short selling will launch on Thursday.
CITIC Securities, China's biggest listed broker, added 1 percent to 13.84 yuan. Founder Securities Co jumped 5.9 percent to 5.95 yuan.
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