China Market gains oneconomic recovery hopes

Mainland China share market finished session higher on Thursday, 19 January 2023, as risk sentiments underpinned amid optimism over a Chinese economic recovery this year.

However, market gains were limited after President Xi Jinping expressed concern a day earlier that the COVID-19 wave hitting China could spread to rural areas during the country's week-long Lunar New Year holidays, which starts on Jan. 21.

At close of trade, the benchmark Shanghai Composite Index advanced 0.49%, or 15.87 points, to 3,240.28. The Shenzhen Composite Index, which tracks stocks on China's second exchange, climbed up 0.67%, or 14.14 points, to 2,112.10. The blue-chip CSI300 index was up 0.62%, or 25.27 points, to 4,156.01.

 

CURRENCY NEWS: China's yuan weakened against the dollar on Thursday, inline with softer mid-point fixing by China's central bank. Prior to the market opening, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.7674 per U.S. dollar, weaker than the previous fix of 6.7602. In the spot market, the onshore yuan CNY=CFXS opened at 6.7656 per dollar and was changing hands at 6.7725 at midday, 105 pips away from the previous day's late session close and 0.08% away from the midpoint.

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