China Shares falls as COVID flare ups

12 Jul 2022 , 05:17 PM

Mainland China share market finished session lower on Tuesday, 12 July 2022, as risk sentiments weighed down on outlook for Chinas economic recovery after Shanghai reported its first case of the highly infectious BA.5 omicron sub-variant, with several cities adopting fresh measures. China discovered its first case of a highly transmissible Omicron sub-variant in Shanghai and those new cases had jumped to 63 in the Chinas largest city from 52 a day earlier. Traders were nervous that the discovery of the new sub-variant and the highest number of daily new cases in Shanghai since May could lead to another round of mass testing, and more Covid lockdowns may lay ahead. At close of trade, the benchmark Shanghai Composite Index fell 0.97%, or 32.12 points, to 3,281.47. The Shenzhen Composite Index, which tracks stocks on Chinas second exchange, shed 1.45%, or 31.78 points, to 2,155.56. The blue-chip CSI300 index was down 0.94%, or 41 points, to 4,313.62. CURRENCY NEWS: Chinas yuan softened against the U.S. dollar, as weaker mid-point fixing by central bank. Prior to market opening, the Peoples Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.7287 per dollar, 0.49% weaker than the previous fix at 6.696. In the spot market, the onshore yuan CNY=CFXS was changing hands at 6.735 at midday, 0.31% weaker than the previous late session close.Powered by Capital Market – Live News