China stocks close up on upbeat manufacturing data

Chinese shares closed higher on Thursday after data showed manufacturing increased at a faster pace, and a government pledge to ease financing costs for the real economy.

The benchmark Shanghai Composite Index moved up 1.28 percent to finish at 2,105.06 points. The Shenzhen Component Index moved up 1.74 percent to close at 7,503.40 points.

Total turnover on the two bourses expanded to 252.8 billion yuan (41.05 billion U.S. dollars) from 228.7 billion yuan on the previous trading day.

A preliminary HSBC reading showed the country's purchasing managers' index (PMI) rose to its highest point in 18 months in July as new orders surged, adding to signs of economic improvement.

An executive meeting of the State Council decided on Wednesday to take various steps to give more financial support to small- and micro-sized enterprises, agriculture sector, services and energy-saving industries.

Major gainers on Thursday included financial, coal and property shares, with sub-indices tracking the three sectors up 2.92 percent, 2.51 percent and 1.42 percent respectively.

Industrial Bank shot up 5.46 percent, China CITIC Bank rose 5.35 percent and Ping An Bank moved up 4.10 percent.

Poly Real Estate edged up 7.60 percent and China Merchants Property Development increased 8.11 percent.

However, the ChiNext Index, a NASDAQ-style board for growth enterprises, plunged 21.22 points, or 1.64 percent, to end at 1,271.88 points.