China Market extends losses to third day

The Mainland China shares finished lower for a third straight session on Wednesday, 09 December 2020, as risk aversion selloff triggered after official data showed China's consumer price index fell in November for the first time in about a decade.

At closing bell, the benchmark Shanghai Composite Index declined 1.12%, or 38.21 points, to 3,371.96. The Shenzhen Composite Index, which tracks stocks on China's second exchange, dropped 1.88%, or 43.17 points, to 2,250.81. The blue-chip CSI300 index was down 1.34%, or 67.18 points, to 4,942.70.

China's factory gate prices fell at a slower pace in November, adding to signs that the world's second-largest economy is rebounding from the COVID-19 pandemic, but consumer prices unexpectedly declined for the first time in over a decade. The consumer price index, a measure of inflation that tracks prices for a basket of consumer goods and services, fell 0.5% in November from a year ago, China's National Bureau of Statistics said Wednesday. The so-called core CPI which excludes food and energy prices rose 0.5% in November from a year ago. The producer price index, which measures prices of goods and services from the perspective of sellers, fell 1.5% in November from a year ago. That was 0.6 percentage points less of a decline versus October's figure, the statistics bureau said.

CURRENCY NEWS: China's yuan firmed on Wednesday as the central bank set a stronger midpoint. The People's Bank of China set the midpoint rate CNY=PBOC at 6.5311 per dollar prior to market open, 9 pips firmer than the previous fix of 6.5320, its strongest since June 26, 2018. The spot market CNY=CFXS opened at 6.5280 per dollar and was changing hands at 6.5275 at midday, 47 pips firmer than the previous late session close.

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