Chinese shares sets a new 10-month high after rising a slight 0.11 percent Tuesday, led by heavyweights and property sector.
The benchmark Shanghai Composite Index rose 3.02 points, or 0.11 percent, to close at 2,724.3. The Shenzhen Component Index was up 0.6 percent, or 62.99 points, to 10,484.33.
Combined turnover rose to 240 billion yuan (35 billion U.S. dollars) from 225 billion yuan the previous trading day.
The current ample capital fluidity has exerted prominent effects on China's nonferrous metals prices but the metals' following rally still depends on substantial growth in demand, analysts said Monday.
The China Federation of Logistics and Purchasing (CFLP) said Monday the Purchasing Managers' Index (PMI) of China's manufacturing sector stood at 53.1 percent in May. The continuous stay of above 50 shows Chinese economy continued on its way to recovery and foretells nonferrous metals consumption will keep warming up, analysts hold.
If the present production capacity can't be digested by actual demand in the following period, metals market is likely to slip back, analyst added. The domestic copper market has shown faltering signs as the gap between spot price and futures price becomes narrowed.
Turn to the funds sector. China's stock-oriented funds invested in A-shares underperformed the market in May, due to frequent position adjustments.
The net asset value of stock-oriented funds investing in A-shares rose 3.93 percent on average during May, compared to a monthly 6.27 percent rally by the Shanghai Composite Index benchmark, according to statistics from Wind Info, a Chinese financial data provider.
Analysts attribute the lackluster performance of such funds to their frequent position adjustments.
(Xinhua News Agency June 3, 2009)
