China Market extends losses to second straight session

The Mainland China shares finished lower for a second straight session on Tuesday, 08 December 2020, weighed down by persistent profit-taking amid lingering Sino-US tensions after the United States on Monday imposed financial sanctions and travel ban on 14 Chinese officials over their alleged role in Beijing's disqualification last month of elected opposition legislators in Hong Kong. However, market losses were contained after customs data showed that China's exports in November rose 21.1% from a year earlier, after 11.4% growth in October, while imports grew 4.5% last month from a 4.7% expansion in October.

At closing bell, the benchmark Shanghai Composite Index fell 0.19%, or 6.43 points, to 3,410.18. The Shenzhen Composite Index, which tracks stocks on China's second exchange, dropped 0.04%, or 0.93 point, to 2,293.98. The blue-chip CSI300 index was down 0.25%, or 12.35 points, to 5,009.88.

The United States on Monday imposed financial sanctions and travel ban on 14 Chinese officials over their alleged role in Beijing's disqualification last month of elected opposition legislators in Hong Kong.

The news came after the United States on Thursday added China's top chipmaker, SMIC, and oil giant CNOOC to a blacklist of alleged Chinese military companies. China's senior diplomat Wang Yi said on Monday he hoped and believed that U.S. policy on China could eventually "return to objectivity and rationality".

CURRENCY NEWS: China's yuan weakened on Tuesday as safe-harbour demand for the dollar boosted the greenback. Before the market open, the People's Bank of China (PBOC) set the midpoint rate for the yuan's daily trading band CNY=PBOC at 6.532 per dollar, its firmest level since June 26, 2018. Spot yuan CNY=CFXS opened weaker at 6.5340 per dollar and was changing hands at 6.5361 at midday, 61 pips softer than Monday's late session close.

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