China Stocks tumbles 2.4%

24 May 2022 , 05:36 PM

The Mainland China market finished session steep lower on Tuesday, 24 May 2022, as investors sentiment was hurt by concerns about the spread of Covid-19 in China and its impact on the economy. Also weighing sentiments was downward revision of domestic economic growth forecast by investment banks. The market succumbed to pressure from profit taking, amid concerns over the spread of Covid-19 in China, with fears that Beijing may resort to robust containment steps. UBS joined other global investment banks, including Goldman Sachs and Standard Chartered, in lowering its 2022 China growth outlook, slashing its full-year GDP forecast to 3.0% from 4.2% previously. That marks a huge discrepancy from the official target of around 5.5% for 2022. At close of trade, the benchmark Shanghai Composite Index stumbled 2.41%, or 75.93 points, to 3,070.93. The Shenzhen Composite Index, which tracks stocks on Chinas second exchange, declined 3.62%, or 72.28 points, to 1,922.48. The blue-chip CSI300 index slumped 2.34%, or 94.83 points, to 3,959.15. Shares of electric vehicle maker Xpeng plummeted more than 9%, after it reported on Monday that its first-quarter net loss widened to 1.7 billion yuan, from 786.6 million yuan a year earlier. CURRENCY NEWS: Chinas yuan eased against the dollar on Tuesday, despite firmer mid-point fixing by central bank. Prior to market opening, the Peoples Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.6566 per dollar, 190 pips or 0.3% firmer than the previous fix 6.6756. The onshore yuan CNY=CFXS opened at 6.6597 per dollar in the spot market and was changing hands at 6.6589 at midday, 101 pips weaker than the previous late session close.Powered by Capital Market – Live News