China Market bounces on stimulus

23 Jun 2022 , 05:24 PM

Mainland China share market finished session higher on Thursday, 23 June 2022, as risk sentiments supported by China President Xi Jinping vow on Wednesday at a business forum that the nation will hit its annual economic growth targets this year and signalled support to the countrys leading payment and fintech firms. At close of trade, the benchmark Shanghai Composite Index advanced 1.62%, or 52.95 points, to 3,320.15. The Shenzhen Composite Index, which tracks stocks on Chinas second exchange, added 2.06%, or 44.19 points, to 2,164.01. The blue-chip CSI300 index grew 1.72%, or 73.26 points, to 4,343.88. Tech shares rose after Chinese President Xi Jinping signalled support to the countrys leading payment and fintech firms in the latest indication that Beijing is easing its regulatory crackdown on the sector. Electric vehicle stocks advanced on reports that Beijing is considering extending tax exemptions. EV battery maker CATL surged nearly 6% after completing a share placement that counted Macquarie Bank, JP Morgan Chase Bank and Barclays Bank as investors. Shares of Chinese automakers jumped, after Chinas cabinet vowed on Wednesday to step up support to automobile purchases. CURRENCY NEWS: Chinas yuan weakened against the U.S. dollar on Thursday, despite firmer mid-point fixing by central bank. Prior to market opening, the Peoples Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.7079 per dollar, 30 pips firmer than the previous fix 6.7109. In the spot market, onshore yuan CNY=CFXS opened at 6.7050 per dollar and was changing hands at 6.7103 at midday, 83 pips weaker than the previous late session close. Powered by Capital Market – Live News