China manufacturing activity highest in 2 years

China’s manufacturing activity reached its highest level since June 2022 as the Caixin manufacturing purchasing managers index rose to 51.7 in May, reports Bloomberg.

The upbeat private survey results contrasted with China’s official manufacturing PMI published Friday showing factory activity unexpectedly contracted last month. The two surveys cover different sample sizes, geographic locations and types of businesses, with the Caixin poll focusing on smaller and export-oriented firms.

China’s benchmark CSI 300 Index of onshore stocks erased losses after the Caixin release, gaining as much as 0.6% with investor sentiment boosted by improving home sales data and positive vehicle sales numbers. Chinese shares trading in Hong Kong rose as much as 3.1% following drops in the previous four sessions.