China Stocks tick higher as Beijing vows to continue zero-COVID strategy

7 Nov 2022 , 02:15 PM

Mainland China share market finished session slightly higher after fluctuating between positive and negative territories on Monday, 07 November 2022, as traders cheered Chinese policymakers pledge last week to prioritize economic growth and press on with reform. However, market gains capped after China reaffirmed its stringent COVID-19 containment approach and data showing exports and imports unexpectedly contracting in October. At close of trade, the benchmark Shanghai Composite Index added 0.23%, or 7.02 points, to 3,077.82. The Shenzhen Composite Index, which tracks stocks on Chinas second exchange, advanced 0.38%, or 7.69 point, to 2,027.86. The blue-chip CSI300 index increased 0.22%, or 8.13 points, to 3,775.30. President Xi Jinpings pledged last week to prioritize economic growth and opening-up at the Shanghai International Import Expo, where the Chinese securities regulator vowed to attract more foreign capital, easing fears that ideology could take precedence as President Xi Jinping began a new leadership term and disruptive lockdowns continued with no clear exit strategy in sight. Beijing disappointed investors hoping for a quick reopening and said it is sticking with a strict COVID-19 containment strategy nearly three years into the pandemic. Chinese health officials said on Saturday the country would maintain its dynamic-clearing approach to COVID-19 cases as soon as they emerge, dashing hopes for a quick reopening of the economy that had fuelled last weeks epic gains. ECONOMIC NEWS: Chinas exports and imports unexpectedly contracted in October as surging inflation and rising interest rates hammered global demand while new COVID-19 curbs at home disrupted output and consumption. Outbound shipments in October shrank 0.3% from a year earlier, a sharp turnaround from a 5.7% gain in September, according Chinese customs data released Monday. Inbound shipments declined 0.7% from a 0.3% gain in September. The overall trade figures resulted in a slightly wider trade surplus of $85.15 billion, compared with $84.74 billion in September. CURRENCY NEWS: Chinas yuan eased against the dollar on Monday, despite firmer midpoint fixing by Chinas central bank. Prior to market opening on Monday, the Peoples Bank of China (PBOC) set the midpoint rate CNY=PBOC at 7.2292 per dollar, 263 pips or 0.36% firmer than the previous fix of 7.2555. In the spot market, the onshore yuan CNY=CFXS was fetched at around 7.2126 by midday, 199 pips weaker than the previous late session close.Powered by Capital Market – Live News