China Market extends gain

The China share market finished session higher on Friday, 28 August 2020, as sentiment was supported by upbeat economic data showing improving industrial profits and a surge in the start-up Chinext board. At closing bell, the benchmark Shanghai Composite Index was up 1.6%, or 53.69 points, to 3,403.81. The Shenzhen Composite Index, which tracks stocks on China's second exchange, advanced 1.97%, or 44.46 points, to 2,305.62. The blue-chip CSI300 index added 2.39%, or 112.92 points, to 4,844.27.

Profits at China's industrial firms grew 19.6% on-year to 589.5 billion yuan ($85.58 billion), following an 11.5% increase seen in June, the National Bureau of Statistics (NBS) data showed on Thursday. Profits at China's industrial firms grew for a third straight month in July and at the fastest pace since June 2018.

Historic reforms that saw relaxation in listing requirements and trading rules of the Shenzhen stock bourse, brought 18 companies to the start-up Chinext board this week. A surge in Chinext volumes and a rebound in earnings of companies in the Shanghai market aided investor sentiment this week.

CURRENCY NEWS: China's yuan strengthened to a near seven-month high on Friday, after the U.S. Federal Reserve's announced an aggressive new strategy to lift employment and increased tolerance for higher inflation. Prior to the market opening, the People's Bank of China set the midpoint CNY=PBOC at 6.8891 per dollar, firmer than the previous fix of 6.8903.

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