China Market rises on Beijing easing measures

22 Aug 2022 , 06:00 PM

Mainland China share market finished session modestly higher on Monday, 22 August 2022, as risk appetite buying underpinned after Beijing stepped up easing measures to arrest an economic slowdown. At close of trade, the benchmark Shanghai Composite Index was up 0.61%, or 19.72 points, to 3,277.79. The Shenzhen Composite Index, which tracks stocks on Chinas second exchange, grew by 0.92%, or 20.33 points, to 2,228.32. The blue-chip CSI300 index increased 0.73%, or 30.33 points, to 4,181.40. The Peoples Bank of China cut its benchmark lending rate and lowered the mortgage reference on Monday, adding to last weeks easing measures, to revive an economy hobbled by a property crisis and pandemic woes. The one-year loan prime rate was lowered by 5 basis points to 3.65% at the central banks monthly fixing, while the five-year LPR was slashed by 15 basis points to 4.3%. The one-year LPR was last reduced in January. The five-year tenor, which was last lowered in May, influences the pricing of home mortgages. Most home mortgages are linked to the 5Y loan prime rate. So this rate cut is obviously to reduce the burden on borrowers. CURRENCY NEWS: Chinas yuan softened against the dollar on Monday after weaker mid-point fixing by central bank. Prior to market opening, the PBOC set the midpoint rate CNY=PBOC at 6.8198 per dollar, 133 pips or 0.2% weaker than the previous fix of 6.8065, the softest since Sept. 28, 2020. In the spot market, the onshore yuan CNY=CFXS was changing hands at 6.8243, 73 pips weaker than the previous late session close.Powered by Capital Market – Live News