China Stocks end mixed on sluggish trade data, COVID-19 lockdown

9 May 2022 , 04:43 PM

The Mainland China stocks closed mixed on Monday, 09 May 2022, with the Shanghai Composite rising fractionally while the Shenzhen Component settled marginal down, as sluggish April trade data reaffirmed market worries that COVID-19 induced lockdowns across the country are taking a toll on economy. Shanghais tightening COVID-19 curbs sparked worries about economic growth and a possible recession in the worlds second-largest economy. Shanghai was tightening a city-wide Covid-19 lockdown imposed more than a month ago, prolonging into late-May an ordeal that Chinas capital Beijing was desperate to avoid by turning mass testing into an almost daily routine. Pro-growth pledges made by the government and the existing stringent virus containment measures have posed a policy dilemma, as effectively highlighted by Premier Li Keqiang when he pushed for government departments to prioritize helping businesses retain jobs. At close of trade, the benchmark Shanghai Composite Index advanced 2.49%, or 71.86 points, to 2,958.28. The Shenzhen Composite Index, which tracks stocks on Chinas second exchange, added 3.94%, or 69.11 points, to 1,821.39. The blue-chip CSI300 index added 2.94%, or 111.42 points, to 3,895.54. ECONOMIC NEWS: Chinas dollar-denominated exports grew 3.9% year-on-year in April, compared to an increase in March of 14.7%, customs data showed Monday. Imports were unchanged in April after sliding 0.1% in the previous month. CURRENCY NEWS: The Chinese yuan declined against the U.S. dollar on Monday after the Peoples Bank of China fixed softer mid-point. Prior to market opening, the Peoples Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.6899 per dollar, 567 pips or 0.85% weaker than the previous fix 6.6332, the weakest since Nov. 3, 2020. The onshore spot yuan CNY=CFXS finished session at 6.7202, the weakest such close since Oct. 15, 2020, down 551 pips, or 0.82%, from previous late night close of 6.6651 last Friday.Powered by Capital Market – Live News