China Market ekes-out gains

The Mainland China share market eked out modest gains on Monday, 10 May 2021, as gains in energy and healthcare companies were more than offset by losses in tech shares. At closing bell, the benchmark Shanghai Composite Index was up 0.27%, or 9.12 points, to 3,427.99. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 0.19%, or 4.25 points, to 2,243.93. The blue-chip CSI300 index fell 0.07%, or 3.63 points, to 4,992.42.

Shares of healthcare companies advanced after a U.S. proposal to waive patents for Covid-19 vaccines met with fierce opposition from European governments and pharmaceutical giants. Cansino Biologics rallied 8.5% to 480.50 yuan

Shares of Shanghai Fosun Pharmaceutical Group surged by the 10% daily limit to 60.12 yuan after the drugmaker a unit will form a venture with Germany-based BioNTech to build a plant in China capable of producing 1 billion doses of Covid-19 vaccines a year.

Energy shares CNOOC and PetroChina rose, as crude oil futures rose on concern about disruption of supplies after cyber attack shut down a U.S. pipeline operator that provides nearly half of the U.S. east coast's fuel supply.

Shares of tech companies declined after the internet watchdog on Saturday announced a ban on some mobile app notifications, as regulators ramp up a campaign to rein in internet firms' growing influence.

CURRENCY NEWS: China yuan appreciated to a 3-1/2-month high against the dollar on Monday, inline with softer mid-point fixing by central bank. Prior to market opening, the People's Bank of China (PBOC) lifted the midpoint rate CNY=PBOC by the most since early January to 6.4425 per dollar, 253 pips firmer than the previous fix of 6.4678. In the spot market, the onshore yuan CNY=CFXS opened at 6.4320 per dollar and rose to a high of 6.4265, the firmest since Jan. 29. By midday, it was changing hands at 6.4295, 13 pips firmer than the previous late session close.

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