China Shares rebound on upbeat trade data

Mainland China share market finished session marginally higher on Wednesday, 13 July 2022, after customs data showed that China's exports grew at their fastest pace in five months in June, while imports rose at a slower pace. However, market gains capped on outlook for China's economic recovery amid renewed COVID-19 travel curbs in the country.

At close of trade, the benchmark Shanghai Composite Index advanced slightly 0.09%, or 2.83 points, to 3,284.29. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 0.93%, or 20.03 points, to 2,175.59. The blue-chip CSI300 index was up 0.18%, or 7.84 points, to 4,321.46.

China's monthly trade surplus soared to a record $97.9 billion in June as export growth accelerated. Exports rose 17.9% to $331.2 billion, up from May's 16.9%, customs data showed Wednesday. Imports rose just 1% to $233.3 billion in a sign of weak domestic demand. With almost no growth in imports, China's global trade surplus swelled by 90% compared with a year ago.

CURRENCY NEWS: China's yuan softened against the U.S. dollar, despite firmer mid-point fixing by central bank, as concerns over fresh COVID-19 outbreaks offset optimism from the country's trade data.

Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.7282 per dollar, 0.01% firmer than the previous fix at 6.7287. In the spot market, the onshore yuan CNY=CFXS was changing hands at 6.259 at midday, 0.03% weaker than the previous late session close.

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