July 1, 2011 (Chinavestor) Trading in Hong Kong was halted on Friday for July 1st is a public holiday in the city. But trading was on in the Mainland, providing China stock investors in the western world some clues. The Shanghai Composite Index (SHA:000001) traded mixed for most of the day with ending the first day of July 2.7 points or 0.1% lower. The Purchasing Managers' Index, a gauge measuring manufacturing activity in China, fell to a level not seen since 2009 February. Slower U.S. economic growth and monetary problems in the Euro zone hurt demand for manufactured goods from Asia, a concern Chinese investors embrace.
Chinese financial stocks dragged the Shanghai COmposite Index (SHA:000001) lower with Industrial and Commercial Bank of China (SHA:601398) weighting down the index the most. But China Shenhua Energy (SHA:601088), the largest Chinese coal miner, rose 2.5%, the most among the 50 largest components of the Shanghai Composite Index (SHA:000001).
Chinese ETFs surged on Thursday but short term outlook is uncertain. With no trading in Hong Kong, there is no indication about component of key Chinese ETFs this morning.