China Market rises 0.77%

Mainland China share market finished session higher on Wednesday, 20 July 2022, amid signs of economic recovery after China's central bank kept its loan prime rate steady and as policymakers have pledged to support the economic recovery from COVID-19 shocks.

Meanwhile buying was also supported on renewed bets of a tech crackdown ending after reports suggested that authorities are preparing to impose a fine of more than $1 billion on ride-hailing firm Didi Global over data breaches.

However, market gains capped amid concerns about resurgence in COVID-19 infections across the country after China reported 1,012 new coronavirus cases for Tuesday, the first time that cases have breached 1,000 since May 20.

At close of trade, the benchmark Shanghai Composite Index advanced 0.77%, or 25.29 points, to 3,304.72. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 0.71%, or 15.54 points, to 2,210.46. The blue-chip CSI300 index was up 0.34%, or 14.46 points, to 4,283.80.

CURRENCY NEWS: China's yuan fell against the U.S. dollar, as 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 6.7465 per dollar prior to market opening, 14 pips weaker than the previous fix 6.7451. In the spot market, the onshore yuan CNY=CFXS was changing hands at 6.7468 at midday, 43 pips weaker from the previous late session close.

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