China Market gains on signs of economic recovery

Mainland China share market finished session higher on Wednesday, 15 June 2022, as better-than-expected domestic economic data supported market sentiments.

The world's second-largest economy showed signs of recovery in May as industrial production rose unexpectedly, while retail sales fell less than expected in the month and fixed asset investment for the January to May period topped expectations due to the relaxation of pandemic-related restrictions, data showed earlier in the day.

At close of trade, the benchmark Shanghai Composite Index increased by 0.5%, or 16.30 points, to 3,305.41. The Shenzhen Composite Index, which tracks stocks on China's second exchange, grew 0.47%, or 9.88 points, to 2,098.99. The blue-chip CSI300 index grew 1.32%, or 55.91 points, to 4,278.22.

ECONOMIC NEWS: China's industrial output climbed 0.7% in May as compared with a year earlier, the National Bureau of Statistics data showed Wednesday, rising from the April's 2.9% decline. Meanwhile, retail sales in May fell 6.7% year-on-year.

Fixed-asset investment jumped 6.2% from a year earlier to 20.6 trillion yuan in the first five months, the National Bureau of Statistics said in a statement.The growth slowed from a 6.8-percent increase registered in the first four months. In May, fixed-asset investment picked up 0.72% from a month earlier.

CURRENCY NEWS: China's yuan was up against the U.S. dollar on Wednesday, despite 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 6.7518 per dollar, 36 pips weaker than the previous fix 6.7482. In the spot market, the onshore yuan CNY=CFXS was changing hands at 6.7194 at midday, 231 pips firmer than the previous late session close.

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