China stocks drop despite improving PMI

Chinese stocks dropped on Thursday with losers outnumbering gainers by 700 to 229 in Shanghai and by 1,135 to 352 in Shenzhen. The benchmark Shanghai Composite Index declined 0.68 percent, or 14.41 points, to finish at 2,101.58. The Shenzhen Component Index closed at 8,602.81, down 51.1 points, or 0.59 percent. Combined turnover grew to 107.61 billion yuan (17.07 billion U.S. dollars) on Thursday from 99.46 billion yuan the previous trading day. Coal miners and property developers led the drops on Thursday, with the sub-indices for the sectors dropping 2.1 percent and 1.76 percent, respectively. China Shenhua, the country's largest coal miner, dropped 0.6 percent to 23.13 yuan per share, while Yangquan Coal Industry Co., Ltd. dropped 2.72 percent to 13.95 yuan. China Vanke, the country's biggest property developer, dropped 0.95 percent to 8.35 yuan from the previous trading, though its profits surged 41.7 percent year-on-year during the first three quarters, according to a statement filed to the Shanghai Stock Exchange. Poly Real Estate, the country's second largest property developer, dropped 2.41 percent to close at 10.95 yuan. In a preliminary report on Wednesday, HSBC said that China's monthly PMI rose to a three-month high of 49.1. The reading was still below 50, which indicates contraction.