China Market end mixed on profit booking

The China share market finished session mixed on Thursday, 06 August 2020, as investors elected to book recent profit amid mounting tensions between the U.S. and China after US Secretary of State Mike Pompeo called on US app stores to remove untrusted Chinese-owned apps, including WeChat and TikTok. This expanded the US charge against Huawei and other Chinese tech giants over a mix of security and human rights abuse claims.

At closing bell, the benchmark Shanghai Composite Index added 0.26%, or 8.90 points, to 3,386.46, registering fifth straight session of advancing. But the Shenzhen Composite Index, which tracks stocks on China's second exchange, fell 0.62%, or 14.40 points, to 2,304.52 and the blue-chip CSI300 index shed 0.3%, or 14.35 points, to 4,762.76.

Military and aerospace stocks led the gain. AVIC Shenyang Aircraft and aircraft maker Avicopter surged by the daily limit of 10%.

Vaccine-related and healthcare stocks were among big losers as traders took profits from surges since the pandemic. Chengdu Kanghua Biological Products and Shenzhen Kangtai Biological Products plunged by the daily cap of 10%.

Liquor stocks were also laggards, as the government of Guizhou province where Kweichow Moutai is based told distributors not to raise prices. Kweichow Moutai fell 1.7%, while Shanxi Xinghuacun Fen Wine Factory lost 4.4%.

CURRENCY NEWS: The yuan eased against greenback, despite firmer mid-point fixing by central bank as greenback regained some ground on hopes U.S. lawmakers will soon agree to an economic stimulus package. Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.9438 per dollar, 0.45% firmer than the previous fix of 6.9752.

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