China Market closes up, Start-up firm lead on reforms

The China share market finished session higher on Monday, 24 August 2020, as buying sentiment was brightened by Beijing's continued market reforms to foster its tech strength and reports that US companies can still do business in China on WeChat.

At closing bell, the benchmark Shanghai Composite Index was up 0.15%, or 4.96 points, to 3,385.64. The Shenzhen Composite Index, which tracks stocks on China's second exchange, advanced 1.26%, or 28.29 points, to 2,278.25. The blue-chip CSI300 index added 0.78%, or 37.01 points, to 4,755.85.

Shares of 18 companies surged on their ChiNext debut on Monday, kicking off a historic reform that will see Shenzhen officially challenge Shanghai for tech listings, while adding fuel to a "technology war" with the United States. As part of China's steps to liberalise its stock markets, stocks debuting on the US$1.3 trillion ChiNext board can now move without limits for their first five days. Meanwhile, trading limits were doubled so that listed stocks can rise or fall 20% in a session.

The big winner was Contec Medical, which manufactures medical products. It finished up 1,061%, after rocketing up as much as 2,931.5%. Ningbo Kbe Electrical, which makes auto cables, surged 743%. Tansun Technology, which provides IT services such as blockchain, cloud computing, big data and artificial intelligence, shot up 259%.

CURRENCY NEWS: China's yuan eased against the dollar on Monday, inline with softer mid-point fixing by central bank. Prior to market open, the People's Bank of China set the midpoint rate CNY=PBOC at 6.9194 per dollar, weaker than the previous fix of 6.9107. The yuan changed hands at 6.9201 in the spot market at midday, 11 pips lower than Friday's late session close.

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