China Market falls 1.2%; Healthcare leads losses

Mainland China share market finished session lower on Wednesday, 22 June 2022, weighed down by healthcare and tech stocks after reports that Beijing authorities plan to scrutinize online medicine sales. Meanwhile, concerns about global monetary tightening and softer outlook for domestic economy in light of COVID-19 shocks also weighed on sentiment.

At close of trade, the benchmark Shanghai Composite Index fell 1.2%, or 39.52 points, to 3,267.20. The Shenzhen Composite Index, which tracks stocks on China's second exchange, dropped 1.28%, or 27.47 points, to 2,119.82. The blue-chip CSI300 index sank 1.27%, or 54.95 points, to 4,270.62.

Healthcare stocks stumbled after reports emerged that Beijing is mulling a ban on sales of medicines on third-party e-commerce platforms.

CURRENCY NEWS: China's yuan weakened against the U.S. dollar on Wednesday, after softer mid-point fixing by central bank. Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.7109 per dollar, weaker than the previous fix 6.6851. In the spot market, onshore yuan CNY=CFXS opened at 6.6946 per dollar and was changing hands at 6.7160 at midday, 250 pips or 0.37% weaker than the previous late session close.

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