China Market ends higher

Mainland China share market finished session higher on Monday, 27 June 2022, as risk sentiments supported on expectation of a economic recovery after Chinese President Xi Jinping pledged to take more effective measures to achieve the country's economic and social development goals. Adding to the positive sentiment was data showing profits across China's industrial firms above designated size improved in May from the previous month.

At close of trade, the benchmark Shanghai Composite Index advanced 0.88%, or 29.44 points, to 3,379.19. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 1.11%, or 24.32 points, to 2,216.98. The blue-chip CSI300 index grew 1.13%, or 49.50 points, to 4,444.27.

CURRENCY NEWS: China's yuan edged up against the U.S. dollar on Monday after firmer mid-point fixing by central bank. Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.6850 per dollar, 150 pips or 0.22 percent firmer than the previous fixing of 6.7. In the spot market, onshore yuan CNY=CFXS opened at 6.6890 per dollar and was changing hands at 6.6876 at midday, 22 pips firmer than the previous late session close.

China's central bank made the biggest daily cash injection into the banking system via open market operations in nearly three months on Monday, to ease pressure from rising cash demand toward the end of the first half of the year. The People's Bank of China injected 100 billion yuan ($14.95 billion) worth of seven-day reverse repos, the biggest daily injection via the liquidity tool since March 31.

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