China Market drops 0.9%

The Mainland China share market finished session lower on Wednesday, 29 December 2021, as investors sentiments weighed down amid concerns about the impact caused by Omicron-driven economic disruptions after the lockdown of 13 million people in the Chinese city of Xian to curb the spread of COVID-19 continued for the seventh day.

Market losses was, however, capped as the China's central bank governor Yi Gang told on Tuesday that the economy and market must by stabilized and the central bank would use various tools to support the real economy, with a particular focus on smaller businesses and technology firms. In addition, the PBOC will by the end of the month issue its first batch of low-cost loans to financial institutions to facilitate carbon emission cuts.

At close of trade, the benchmark Shanghai Composite Index fell 0.91%, or 33.11 points, to 3,597. The Shenzhen Composite Index, which tracks stocks on China's second exchange, dropped 0.81%, or 20.41 points, to 2,494.41. The blue-chip CSI300 index declined 1.46%, or 72.48 points, to 4,883.48.

CURRENCY NEWS: China's yuan was down against the U.S. dollar on Wednesday after softer mid-point fixing by the central bank. Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.3735 per dollar, 0.01% softer than the previous fix of 6.3728. In the spot market, the onshore yuan CNY=CFXS was changing hands at 6.3715 around late afternoon, 0.04% lower than the previous late session close of 6.369.

Powered by Capital Market - Live News