ATF indices close mixed; financials post big moves

Bank names shake up the flagship index, while coupon payments drag down the ATF ALLINDEX Enterprise and Financial 

ATF indices close mixed; financials post big moves

(ATF) The ATF indices closed mixed on Monday, with the flagship China Bond 50 index and the ATF ALLINDEX Enterprise and Financial gauges ending the day in negative territory, losing 0.01%, 0.12% and 0.07%, respectively. Meanwhile, the ATF Corporates and Local Government measures climbed 0.01% and 0.03%.

Moves were seen in the financial constituents of the China Bond 50 index with losses recorded in the bonds of Xiamen International Bank (-0.26%), and gains in the bonds of Agricultural Development Bank of China (0.33%) and China Development Bank (0.09%). 

China Merchants Group, an industrial name, lost 0.55% while Xi’An Hi-tech and Datong Coal Mine Group rose 0.05% and 0.06%, respectively. 

A coupon payment on the bonds of Zijin Mining on August 30 dragged down the ATF ALLINDEX Enterprise, while one on Haitong Securities paper weighed on the ATF ALLINDEX Financial. The bonds dropped 3.78% and 3.25% respectively.

Other losses within these indices include those of China Merchants (-0.55%) and Chengdu Rail Transit (-0.54%) in the ATF ALLINDEX Enterprise, and Xiamen International Bank (-0.26%) and China Great Wall Asset Management (-0.07%) in the ATF ALLINDEX Financial. China Merchants Group is a constituent of both the China Bond 50 index and the ATF ALLINDEX Enterprise, while Xiamen International Bank is a constituent of the China Bond 50 index and the ATF ALLINDEX Financial.

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The biggest gains of these indices were posted by Datong Coal Mine Group (0.06%) and Xi’An Hi-tech (0.05%) in the ATF ALLINDEX Enterprise, and Bank of Jiangsu (0.04%), China Huarong Asset Management (0.04%) and China Cinda Asset Management (0.04%) in the ATF ALLINDEX Financial. 

Xi’An hi-tech is a constituent of both the China Bond 50 index and the ATF ALLINDEX Enterprise. Datong Coal Mine Group is a constituent of both the China Bond 50 and the ATF ALLINDEX Enterprise. 

The ATF ALLINDEX Corporates recorded no losses, while the biggest gains were seen in the bonds of Jizhong Energy Group (0.05%), Haier Financial (0.04%), Fuyang Construction (0.04%), Guangzhou Development District (0.04%), Sino-Ocean (0.4%) and Wuxi Construction Development (0.04%).

All constituents of the ATF ALLINDEX Local Governments rose between 0.02% and 0.03%. 

On Monday, China released the results of its manufacturing and non-manufacturing PMI surveys. The manufacturing PMI dipped slightly in August to 51.0 from 51.1 in July, while the non-Manufacturing PMI rose to 55.2 from 54.2 in the previous month.

“The latest PMI surveys showed that the pace of economic growth picked up in August as stronger services activity more than offset a slight loss of momentum in manufacturing and construction,” stated Julian Evans-Pritchard, senior China economist at Capital Economics in Singapore.

Despite the levelling off in the manufacturing PMI, Evans-Pritchard believes that there is further room for growth in industrial activity given the anticipated ramp-up in fiscal stimulus in the coming months. The fact that the recovery has now extended to the services sector underscores his previously-held view that China’s investment-led rebound would in time stimulate consumer spending and shore up the rebound.

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