China Market gains 0.5%

4 Jul 2022 , 05:29 PM

Mainland China share market finished session higher on Monday, 04 July 2022, supported by the launch of cross-border investment scheme ETF Connect. At close of trade, the benchmark Shanghai Composite Index advanced 0.53%, or 17.79 points, to 3,405.43. The Shenzhen Composite Index, which tracks stocks on Chinas second exchange, gained 1.17%, or 25.90 points, to 2,245.31. The blue-chip CSI300 index was up 0.66%, or 29.31 points, to 4,496.03. Market participants welcomed the planned Swap Connect launch between China and Honk Kong in six months, allowing mutual access to interest rate swap trading initially, to promote financial derivatives markets on both sides. CURRENCY NEWS: Chinas yuan firmed up against the U.S. dollar on Monday, despite weaker mid-point fixing by central bank, due to narrowing US 10-year yield advantage versus its Chinese counterparts. The strength in the yuan on Monday also came as the PBOC made the smallest daily cash injection through open market operations in 1-1/2 years, resulting in a net withdrawal of 97 billion yuan for the day. Prior to market opening, the Peoples Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.7071 per dollar, 208 pips or 0.3% weaker than the previous fixing of 6.6863. In the spot market, onshore yuan CNY=CFXS opened at 6.7010 per dollar and was changing hands at 6.6921 at midday, 99 pips firmer than the previous late session close. Powered by Capital Market – Live News