China Market extends gain on reopening boost

Mainland China share market finished session higher on Monday, 09 January 2023, extending recent bull run, as investor sentiment improved by optimism over economic recovery following the country's border reopening as well as government support for internet sector and relax restrictions on borrowing for property developers.

At close of trade, the benchmark Shanghai Composite Index advanced 0.58%, or 18.4 points, to 3,176.08. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 0.68%, or 13.95 points, to 2,054.47. The blue-chip CSI300 index was up 0.81%, or 32.23 points, to 4,013.12.

Investor sentiment improved as China opened sea and land crossings with Hong Kong on Sunday and ended a requirement for incoming travellers to quarantine, dismantling a final pillar of a zero-COVID policy.

 

Sentiment also got a boost by a central banker's pledge to support the internet sector and private firms, as well as an overhaul at Ant Group that saw its founder Jack Ma cede control of the fintech giant.

CURRENCY NEWS: The Chinese currency was up against the U.S. dollar on Monday, as China's central bank set a firmer midpoint rate. Prior to the market open, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.8265 per dollar, 647 pips or 0.95% firmer than the previous fix of 6.8912. In the spot market, the onshore yuan CNY=CFXS was changing hands at 6.7712 per dollar, up 523 pips or 0.77% from the previous late night close of 6.8235 on Friday.

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