China Shares falls on COVID-19 cases, Sino-U.S. tensions

8 Jul 2022 , 05:42 PM

Mainland China share market finished session down on Friday, 08 July 2022, as risk sentiments weighed down by concerns over rising COVID-19 cases and lingering Sino-U.S. tensions. Also, sentiments was subdued on caution ahead of the release of Chinas second quarter gross domestic product (GDP) and other activity indicators due next week, as the economy faced stiff pressure from COVID-19 outbreaks in spring. However, market losses capped after a report that the country was considering a $220- billion stimulus. The Chinese government is considering raising $220 billion by selling special bonds to accelerate infrastructure funding and reviving the pandemic-hit economy. At close of trade, the benchmark Shanghai Composite Index fell 0.25%, or 8.32 points, to 3,356.08. The Shenzhen Composite Index, which tracks stocks on Chinas second exchange, shed 0.35%, or 7.76 points, to 2,219.90. The blue-chip CSI300 index was down 0.33%, or 14.69 points, to 4,428.78. CURRENCY NEWS: Chinas yuan softened against the U.S. dollar on Friday, despite firmer mid-point fixing by central bank. Prior to market opening, the Peoples Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.7098 per dollar, 45 pips or 0.07% firmer than the previous fix at 6.7143. In the spot market, the onshore yuan CNY=CFXS opened at 6.6940 per dollar and was changing hands at 6.7060 at midday, 45 pips weaker than the previous late session close.Powered by Capital Market – Live News