China Stocks end lower

Mainland China share market finished session lower on Friday, 12 August 2022, as a COVID-19 lockdown in commodities hub Yiwu rattled sentiment.

At close of trade, the benchmark Shanghai Composite Index declined 0.15%, or 4.78 points, to 3,276.89. The Shenzhen Composite Index, which tracks stocks on China's second exchange, dropped 0.45%, or 9.91 points, to 2,207.06. The blue-chip CSI300 index was down 0.06%, or 2.39 points, to 4,191.15.

Several COVID-hit Chinese cities from the country's east to west imposed fresh restrictions and lockdowns on their populations on Thursday to contain flare-ups that are again threatening to disrupt local economies.

The eastern export and manufacturing hub Yiwu said on Thursday it would enter three days of "silent management", with most of its residents banned from leaving designated areas and some confined to their homes. Key districts in Xinjiang's capital Urumqi, meanwhile, have been in a five-day lockdown starting on Wednesday.

Mainland China reported 1,993 domestically transmitted new coronavirus cases for Aug. 10 - 614 symptomatic and 1,379 asymptomatic - the National Health Commission said on Thursday.

CURRENCY NEWS: China's yuan inched higher against the dollar on Friday despite softer mid-point fixing by central bank, as slower-than-expected U.S. inflation readings prompted some investors to dial back hawkish Federal Reserve expectations. The People's Bank of China set the midpoint rate CNY=PBOC at 6.7413 per dollar prior to the market open, 89 pips weaker than the previous fix 6.7324. In the spot market, the onshore yuan CNY=CFXS opened at 6.7440 per dollar and was changing hands at 6.7355 at midday, 95 pips firmer the previous late session close.

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