China Stocks fall amid COVID-19 outbreaks

13 Jan 2022 , 04:57 PM

The Mainland China share market finished session at lowest in more than five months on Thursday, 13 January 2022, as investor sentiment soured amid heightened worries over an economic slowdown due to broadening omicron spread.

At close of trade, the benchmark Shanghai Composite Index declined 1.17%, or 42.17 points, to 3,555.26. The Shenzhen Composite Index, which tracks stocks on Chinas second exchange, fell 1.65%, or 40.90 points, to 2,434.92. The blue-chip CSI300 index decreased 1.64%, or 79.66 points, to 4,765.92.

China is battling with its latest outbreaks of COVID-19, with the Omicron variant detected in several cities including Chinese port city of Tianjin, deepening concern that the vastly more infectious variant could spread quickly across the worlds largest trading nation, upending global supply chains.

Omicron has brought fresh challenges to Chinas strategy to quickly extinguish local outbreaks, and there are concerns that tough measures taken could end up hampering the economy.

Shares of property developers declined, as sentiment soured amid reports that several of Chinas biggest banks have become more selective about funding real estate projects by local government financing vehicles.

Shares of Consumer staples tumbled, with liquor makers leading retreat amid COVID-19 outbreaks and tightening curbs on movements between regions that clouded the outlook for the sector.

CURRENCY NEWS: Chinas yuan was down against the U.S. dollar on Thursday, despite stronger mid-point fixing by the central bank. Prior to market opening, the Peoples Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.3542 per dollar, 116 pips, or 0.18%, stronger than the previous fix of 6.3658. In the spot market, the onshore yuan CNY=CFXS opened at 6.3580 per dollar, rose to a two-week high of 6.3566, before changing hands at 6.3618 by midday, 30 pips weaker than the previous late session close.

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