China stocks dip over poor factory activity prediction

Chinese shares dipped over HSBC flash PMI figures released on Thursday indicating sluggish manufacturing activity in January.

The benchmark Shanghai Composite Index fell 0.47 percent, or 9.57 points, to finish at 2,042.18. The Shenzhen Component Index dropped 0.41 percent, or 31.98 points, to close at 7,788.47.

Combined turnover on the two bourses fell to 212 billion yuan (34.7 billion U.S. dollars) from 216 billion yuan on the previous trading day.

The flash reading for the China manufacturing Purchasing Managers' Index (PMI) fell to 49.6 in January, hitting a 6-month low, said HSBC on Thursday.

A PMI reading above 50 percent indicates expansion, while a reading below 50 percent indicates contraction.

The financial sector led the losing trend, with China Pingan, an insurance giant, dropping 1.94 percent and China Merchants Bank falling 1.68 percent.

The furniture and media sectors made significant gains. Guangdong Guangzhou Daily Media Co., Ltd. rose 10.03 percent to reach 17.66 yuan per share.

Simei Media Co., Ltd., Beijing UTour International Travel Service Co., Ltd. and another six companies with newly listed shares on the Shenzhen stock market rose to the daily limit, gaining over 45 percent.

Boosted by the strong performance of new shares, the ChiNext Index, a Nasdaq-style board tracking China's growth enterprises, gained 2.08 percent to another record closing high.