China Market extends gain on economy optimism

The China share market closed higher on Tuesday, 07 July 2020, extending yesterday's blockbuster rally, after the state-owned China Securities Journal said investors should look forward to the wealth effect of the capital markets and the prospect for a healthy bull market.

At closing bell, the benchmark Shanghai Composite Index added 0.37%, or 12.46 points, to 3,345.35. The Shenzhen Composite Index, which tracks stocks on China's second exchange, rose 1.71%, or 36.35 points, to 2,157.94. The blue-chip CSI300 index gained 0.6%, or 28.04 points, to 4,698.13.

ECONOMIC NEWS: China's foreign exchange reserves rose less than expected in June as the yuan strengthened and global asset prices rebounded amid a recovery in economic sentiment. The country's foreign exchange reserves - the world's largest - rose $10.64 billion in June to $3.112 trillion, central bank data showed on Tuesday. Reserves stood at $3.102 trillion in May.

CURRENCY NEWS: The yuan was up against the dollar on Tuesday, as stronger mid-point fixing by central bank. Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at 7.0310 per dollar prior to the market open, 353 pips, or 0.5%, firmer than the previous fix of 7.0663,

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