China: Stocks mixed as resurgence of COVID-19 cases

22 Nov 2022 , 03:34 PM

Mainland China share market finished session in mixed fashion on Tuesday, 22 November 2022, amid lingering concerns about the outlook for the world second largest economy as imposition of stringent restrictions and lockdowns in several cities in China, including Shanghai and Beijing, due to resurgence of COVID-19 cases. At close of trade, the benchmark Shanghai Composite Index edged up 0.13%, or 3.90 points, to 3,088.94. The Shenzhen Composite Index, which tracks stocks on Chinas second exchange, fell 1.29%, or 26.11 points, to 2,002.39. The blue-chip CSI300 index rose marginal 0.01%, or 0.44 points, to 3,769.57. Market risk sentiments turned downbeat after Chinas capital warned on Monday that it was facing its most severe test of the COVID-19 pandemic, with a surge in COVID-19 cases sparking fresh restriction measures. Deaths from the virus were also recorded in Beijing for the first time since late May. Beijing shut parks, shopping malls and museums on Tuesday, while more cities resumed mass testing for COVID-19, as cases spiked, which has fuelled concerns about the hit to the worlds second-largest economy. On Monday, Chinese banks were reportedly encouraged to increase credit to support the economy, especially industries that have been hit harder by Covid. The move aims to reduce the risk of property risk spillover, safeguard the legitimate rights and interests of homeowners, support housing demand among first-time buyers and the need to improve current living conditions. Chinas financial regulators have asked banks to stabilize lending to property developers and construction firms, the latest effort by policymakers to turn around the real-estate crisis and bolster economic growth. Authorities support the ?reasonable? extension of existing real estate development loans and trust loans, according to a statement posted on the Peoples Bank of Chinas website after a Monday meeting with commercial banks. CURRENCY NEWS: Chinas yuan appreciated against the dollar on Tuesday, November 22, 2022, as stronger midpoint fixing by Chinas central bank. Prior to market opening on Friday, the Peoples Bank of China (PBOC) set the midpoint rate CNY=PBOC at 7.1667 per dollar, weaker than the previous fix of 7.1256 and the weakest since November 11. In the spot market, the onshore spot yuan CNY=CFXS was changing hands at 7.1518 at midday, 152 pips stronger than the previous late session close. Powered by Capital Market – Live News