CHINA’S shares ended at their lowest in more than three-and-a-half years Thursday as investor confidence remained subdued, with a gauge of nationwide manufacturing activity showing no signs of a recovery in the world’s second-largest economy.

The benchmark Shanghai Composite Index ended down 2.08 percent, or 42.99 points, at 2,024.84, its lowest closing level since Feb. 2, 2009 when the index settled at 2,011.68. The Shenzhen Composite Index fell 2.95 percent, or 25.52 points, to 840.21.

Trading volume on the two exchanges rose to 110.24 billion yuan (US$17.5 billion) from 88.98 billion yuan Wednesday.

The preliminary reading of the purchasing mangers’ index (PMI) released by HSBC hit 47.8 in September, slightly up from a final reading of 47.6 in August, the U.K.-based lender said Thursday. The reading of less than 50 indicated shrinking manufacturing activity.

The latest reading marks the 11th straight month of contraction since November, underscoring broader economic weakness and shrinking demand in both domestic and overseas markets.

“The HSBC PMI data don’t offer us a surprise to the upside, so the market will continue to fall,” said Zhu Kaikai, an analyst at Soochow Securities.

Orient Securities analyst Cheng Gang agreed with the view, saying: “While economic growth continues to slow, we haven’t seen further stimulus measures from the government. The market will keep consolidating with a downward bias.”

Hopes for a new stimulus package engendered a 4.3 percent rally in shares in the first 10 days of this month. With the stimulus hopes fizzling out, equities have given up all of the earlier gains. (SD-Agencies)