China Market ends lower

Mainland China share market finished session slightly lower on Wednesday, 22 February 2023, as risk-averse sentiment weighed on the stocks amid geopolitical tensions ahead of the Ukraine war's first anniversary and signs that Beijing wants to play a more active role in the Ukraine conflict.

At close of trade, the benchmark Shanghai Composite Index declined 0.47%, or 15.38 points, to 3,291.15. The Shenzhen Composite Index, which tracks stocks on China's second exchange, fell 0.27%, or 5.95 points, to 2,159.82. The blue-chip CSI300 index dropped 0.9%, or 37.40 points, to 4,106.95.

China's top diplomat told one of Putin's closest allies on Tuesday Beijing's relationship with Moscow was "rock solid". Chinese leader Xi Jinping is preparing to visit Moscow for a summit with Russia's president in the coming months, as per reports, as Vladimir Putin wages war in Ukraine and portrays himself as a standard-bearer against a U.S.-led global order.

Beijing says it wants to play a more active role aimed at ending the conflict, and the people familiar with Mr. Xi's trip plans said a meeting with Mr. Putin would be part of a push for multiparty peace talks and allow China to reiterate its calls that nuclear weapons not be used.

Western capitals have expressed skepticism about China's diplomatic initiative, the broad outlines of which were first previewed last week by the country's top diplomat, Wang Yi, at the Munich Security Conference.

CURRENCY NEWS: China's yuan weakened to a seven-week low against the dollar on Wednesday after softer 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 6.8759 per dollar, weaker than the previous fix of 6.8557. In the spot market, the onshore yuan opened at 6.8792 per dollar and was changing hands at 6.8930 at midday, 60 pips weaker than the previous late session close and 0.25% away from the midpoint.

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