China Market fall 1.1%

The Mainland China share market finished session lower on Wednesday, 16 June 2021, as risk aversion selloff triggered after China's industrial output, retail sales and fixed-asset investment grew at less than expected rates in May.

At closing bell, the benchmark Shanghai Composite Index declined 1.07%, or 38.23 points, to 3,518.33. The Shenzhen Composite Index, which tracks stocks on China's second exchange, fell 2.32%, or 55.49 points, to 2,332.41. The blue-chip CSI300 index dropped 1.67%, or 86.07 points, to 5,080.49.

The best performing sectors in the Shanghai Stock Exchange were Farm Machinery (up 7.7%), Soft Drinks (up 5.8%), Market Services (up 5.7%), Property & Casualty Insurance (up 5%), and Specialized Finance (up 5%), while the worst performing sectors were Air Freight (down 8%), Vintners & Others (down 6.7%), Other Non-ferrous Metal (down 6.3%), Automobile (down 6.1%), and Health Care Facilities (down 5.2%).

The best performing sectors in the Shenzhen Stock Exchange were Asset Management & Custody Banks (up 2.8%), Oil & Gas Drilling (up 2.4%), Leisure Services (up 2.4%), Environmental Protection Engineering (up 1.8%), and Oil & Gas Equipment & Services (up 1.4%), while the worst performing sectors were Automobile (down 8.5%), Industrial Conglomerates (down 8.2%), Shoes (down 6.5%), Rare Metals (down 6.2%), and Aluminum (down 6%).

ECONOMIC NEWS: China's industrial production grew 8.8% on a yearly basis in May, reports said citing data from the National Bureau of Statistics on Wednesday. Industrial production was the lowest rate in 5 months, amid softer export orders, rising commodity prices and factory costs and as a virus outbreak in southern China disrupted port services and delayed deliveries.

China's retail sales of consumer goods went up 12.4% year on year in May this year, data from the National Bureau of Statistics (NBS) showed Wednesday. In the Jan.-May period, retail sales surged 25.7% year on year.

China's fixed-asset investment (FAI) increased 15.4% year on year in the first five months of 2021. According to the NBS, the FAI made up 19.39 trillion yuan (about USD3.03 trillion) in the first five months.

CURRENCY NEWS: China yuan was up against the dollar on Wednesday, despite weaker mid-point fixing by central bank. Prior to the market opening, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at a three-week low of 6.4078 per dollar, 8 pips weaker than the previous fix of 6.407. In the spot market, onshore yuan CNY=CFXS opened at 6.4040 per dollar and was changing hands at 6.4039 at midday, 31 pips firmer than the previous late session close.

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