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![This is the second consecutive month that the manufacturing PMI is in growth territory, signaling China's corrective economic policies are working [Xinhua]](http://thebricspost.com/wp-content/uploads/2016/10/259217115_8-e1475482868617.jpg)
This is the second consecutive month that the manufacturing PMI is in growth territory, signaling China’s corrective economic policies are working [Xinhua]
Chinese stocks on the Hang Seng Index in Hong Kong rallied on Monday rising 1.13 per cent to 23,559.9 following a positive manufacturer’s report over the weekend.
The National Bureau of Statistics (NBS) on Saturday reported that China’s manufacturing Purchasing Managers’ Index (PMI) for September was level and unchanged at 50.4 from a month earlier.
The government survey tracks the health of some 3,000 large and state-owned companies
The reading is above the neutral 50-point level, signalling an expansion in the manufacturing sector, according to the NBS.
A reading below 50 represents contraction.
This is the second consecutive month that the manufacturing PMI has been in growth territory.
As for non-manufacturing PMI, this increased to 53.7 in September from the previous month’s 53.5 – marking the seventh consecutive month of growth.
The Chinese benchmark Shanghai Composite index closed up 0.21 per cent to break the 3,000 mark on Friday.
There was no trade there on Monday as Chinese and South Korean mainland exchanges are closed for a week-long holiday.
Meanwhile, the Caixin manufacturing survey, which focuses on some 420 smaller, private companies also showed an expansion in the manufacturing industry, registering 50.1 in September – up from an even 50.0 in August.
The Caixin survey is conducted by financial information service provider Markit, sponsored by Caixin Media.
The BRICS Post with inputs from Agencies
