China Market ends lower

Mainland China share market finished session lower on Friday, 10 February 2023, as selloff resumed due to mixed economic data and geopolitical uncertainties.

The Biden administration is said to be mulling new rules that would curb US investment in Chinese technology companies, as per reports, days after the US government shot down a Chinese-owned spy balloon over its airspace. Meanwhile, consumer prices in China rose last month by 2.1 per cent from a year earlier, versus 1.8 per cent in December, the government data said on Friday, limiting the room for monetary easing. Producer prices index fell 0.8 per cent, suggesting manufacturers struggled to pass on costs to consumers.

At close of trade, the benchmark Shanghai Composite Index was down 0.3%, or 9.71 points, to 3,260.67. The Shenzhen Composite Index, which tracks stocks on China's second exchange, was up 0.44%, or 9.48 points, to 2,164.72. The blue-chip CSI300 index shed 0.59%, or 24.55 points, to 4,106.31.

ECONOMIC NEWS: Consumer prices in China were up 0.8% on month in January, the National Bureau of Statistics said on Friday. On a yearly basis, consumer prices advanced 2.1%, higher than 1.8% in the previous month. The bureau also said that producer prices dropped 0.8% on year versus expectations for a decline of 0.5% following the 0.7% drop a month earlier.

CURRENCY NEWS: China's yuan softened against the dollar on Friday, despite firmer mid-point fixing by China's central bank. Prior to market opening, the People's Bank of China (PBOC) set the yuan's midpoint rate CNY=PBOC at 6.7884 per dollar, firmer than the previous fix 6.7905. In the spot market, the onshore yuan CNY=CFXS was changing hands at 6.7996 at midday, 146 pips weaker than the previous late session close and 0.16% away from the midpoint.

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