China Stocks rebound on liquidity infusions

15 Feb 2022 , 04:38 PM

The Mainland China share market finished session higher on Tuesday, 15 February 2022, as appetite for risk assets underpinned after the Chinas central bank stepped up support for its slowing economy by pumping in cash via policy loans for a second straight month.

The Peoples Bank of China injected a net 100 billion yuan into the banking system with its medium-term lending facility, while leaving the borrowing rate unchanged at 2.85%.

At close of trade, the benchmark Shanghai Composite Index advanced 0.5%, or 17.21 points, to 3,446.09. The Shenzhen Composite Index, which tracks stocks on Chinas second exchange, added 1.35%, or 30.50 points, to 2,283.63. The blue-chip CSI300 index rose 1.06%, or 48.41 points, to 4,600.10.

CURRENCY NEWS: Chinas yuan appreciated against the dollar on Tuesday after firmer mid-point fixing by central bank. The yuan also got support from data showing continued foreign money flows into Chinas bond market.

Prior to market opening, the Peoples Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.3605 per dollar, firmer than yesterdays fix of 6.3664. Spot yuan CNY=CFXS opened at 6.3535 per dollar and was changing hands at 6.3537 at midday, 38 pips stronger than the previous late session close.

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