HONG KONG, June 23 China shares edged down on
Monday even though a preliminary survey showed activity in
China's factory sector in June expanded for the first time in
six months, a new sign the economy is stabilising.
But a liquidity squeeze resulting from new initial public
offerings (IPOs) continued to weigh on the markets. The squeeze
is not expected to improve before the end of the month.
The Shanghai Composite Index closed down 0.1 percent
at 2,024.37 points. The CSI300 of the leading Shanghai
and Shenzhen A-share listings also slipped 0.1 percent.
Shares of medical equipment companies were stronger on hopes
of more state support for the sector. Guangdong Biolight
Meditech jumped 9.3 percent.
The Nasdaq-style ChiNext Composite Index of
mostly high-tech startups listed in Shenzhen advanced 2.2
percent, following Friday's rise of 1.4 percent.
The two-day gain helped the index recover from a 3.3 percent
drop on Thursday.
The HSBC/Markit Flash China Manufacturing Purchasing
Managers' Index rose to 50.8 in June from May's final reading of
49.4, moving above the 50-point level that separates growth in
activity from contraction.
(Reporting by Grace Li; Editing by Richard Borsuk)