China Market rises on policy support hopes

9 Sep 2022 , 05:30 PM

Mainland China share market finished session higher on Friday, 009 September 2022, on renewed speculation that the central bank to keep its accommodative policy after lower than expected growth pace in domestic inflation. Market pundit expects 25bp reserve requirement ratio (RRR) cut by the Peoples Bank of China (PBoC) in the fourth quarter after both consumer and producer price inflation eased in August. Chinas consumer inflation retreated from a two-year high of 2.7% in July to 2.5% in August. Producer inflation also cooled to an 18-month low of 2.3% in August from 4.2% in July. At close of trade, the benchmark Shanghai Composite Index advanced by 0.82%, or 26.47 points, to 3,262.05. The Shenzhen Composite Index, which tracks stocks on Chinas second exchange, added 0.65%, or 13.72 points, to 2,118.11. The blue-chip CSI300 index increased 1.39%, or 56.11 points, to 4,093.79. In Shanghai, genome sequencing machine maker MGI Tech climbed 15% versus its initial public offering price of 41.32 yuan on the STAR Market board, while soybean producer Shandong Sinoglory Health Food rose by the daily trading limit of 44% from its 10.55 yuan offer price on the main board. In Shenzhen, Jiangsu Tongxingbao Intelligent Transportation Technology rose 10.5% from its IPO price of 18.78 yuan, while childrens apparel maker Beijing Jiaman Dress fell 16% from its 40.66 yuan offer price. CURRENCY NEWS: Chinas yuan appreciated against the dollar on friday after firmer mid-point fixing by central bank. Prior to market opening, the Peoples Bank of China (PBOC) set midpoint rate CNY=PBOC at 6.9098 per dollar, 50 pips firmer than the previous fix of 6.9148. In the spot market, the onshore yuan CNY=CFXS opened at 6.9460 per dollar and was changing hands at 6.9394 at midday, 169 pips or 0.24% firmer than the previous late session close. Powered by Capital Market – Live News