China Market end mixed

Mainland China share market finished session with mixed note on Tuesday, 10 January 2023, as investors opted to book profit made recent rally amid optimism surrounding the nation's reopening and quick economic recovery.

At close of trade, the benchmark Shanghai Composite Index fell 0.21%, or 6.58 points, to 3,169.51. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 0.29%, or 5.96 points, to 2,060.44. The blue-chip CSI300 index was up 0.11%, or 4.35 points, to 4,017.47.

China's quick economic recovery is conducive to the inflow of northbound capital, or the amount that overseas investors pump into A shares via the stock connect program linking Shanghai, Shenzhen and Hong Kong bourses. The northbound capital reported a net inflow of 7.7 billion yuan ($1.1 billion) on Monday. Northbound capital inflow has exceeded 27 billion yuan so far this year.

Data released by the State Administration of Foreign Exchange on Saturday showed that China's foreign exchange reserves exceeded $3.12 trillion by the end of December, up $10.2 billion from a month earlier. This was a rise for the third month in a row.

ECONOMIC NEWS: Chinese banks extended 1.4 trillion yuan ($206.72 billion) in new yuan loans in December, up from November. Broad M2 money supply grew by 11.8% in December from a year earlier, central bank data showed on Tuesday. M2 grew 12.4% in November from a year earlier. Outstanding yuan loans grew by 11.1% in December from a year earlier compared with 11.0% growth in November.

CURRENCY NEWS: The Chinese currency advanced further against the U.S. dollar on Tuesday, as China's central bank set a firmer midpoint rate and optimism over the country's reopening. Prior to the market open, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.7611 per dollar, firmer than the previous fix of 6.8265. In the spot market, the onshore yuan opened at 6.7650 per dollar and was changing hands at 6.7698, 32 pips firmer than the previous late session close.

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