China Market falls on grim trade data

7 Dec 2022 , 03:43 PM

Mainland China share market finished session lower on Wednesday, 07 December 2022, as risk sentiments weighed down by weaker-than-expected export and import data. However, market losses capped after government announcement on more COVID-19 easing measures. At close of trade, the benchmark Shanghai Composite Index fell 0.4%, or 12.91 points, to 3,199.62. The Shenzhen Composite Index, which tracks stocks on Chinas second exchange, added 0.15%, or 3.11 points, to 2,071.04. The blue-chip CSI300 index sank 0.25%, or 9.76 points, to 3,958.44. China earlier in the day reported grim trade data for November, with both imports and exports suffering their biggest monthly falls since 2020 – auguring badly for recovery prospects. Customs data showed exports sank 9% from a year earlier, worsening from Octobers 0.9% decline. Imports fell 10.9%, down from the previous months 0.7% retreat. Chinas national health authority said on Wednesday that asymptomatic COVID-19 cases and those with mild symptoms can self-treat while in quarantine at home. Cross-region travelers in China will no longer need to show Covid-negative test results, according to a National Health Commission release. Areas that are not designated as high-risk cannot halt work or production, the notice said. Covid patients without symptoms can also choose to isolate at home for five days, it said. CURRENCY NEWS: The Chinese currency strengthened against the U.S. dollar despite weaker mid-point fixing by central bank. Prior to market opening, the Peoples Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.9975 per U.S. dollar, weaker than the previous fix 6.9746. The spot yuan CNY=CFXS opened at 6.9888 per dollar and was changing hands at 6.9790 at midday, 160 pips stronger than the previous late session close and -0.26% away from the midpoint. Powered by Capital Market – Live News