China Market falls after GDP disappoints

The China share market finished volatile session lower on Monday, 19 October 2020, as risk sentiments dampened after weaker than expected China's third-quarter GDP growth data.

At closing bell, the benchmark Shanghai Composite Index declined 0.71%, or 23.69 points, to 3,312.67. The Shenzhen Composite Index, which tracks stocks on China's second exchange, sank 0.7%, or 15.91 points, to 2,249.53. The blue-chip CSI300 index dropped 0.76%, or 36.19 points, to 4,755.49.

The world's second-biggest economy saw growth of 4.9% between July and September, compared to the same quarter last year. However, the figure is lower than the 5.2% expected by economists and following 3.2% growth in the second quarter, highlighting continued challenges facing the world's second-largest economy as it emerges from the coronavirus crisis. For the first three months of this year China's economy shrank by 6.8% when it saw nationwide shutdowns of factories and manufacturing plants.

CURRENCY NEWS: China's yuan weakened on Monday, pulling back from early gains after latest data showed China's economy grew at a slightly slower-than-expected pace in the third quarter,

The People's Bank of China set the midpoint of the yuan's daily trading band CNY=PBOC at 6.701 per dollar on Monday, firmer by 0.48% from 6.701 from yesterday fixing. Spot yuan CNY=CFXS was changing hands at 6.7005 per dollar, 15 pips weaker than its late session close on Friday. The offshore yuan CNH=D3 was little changed at 6.696 per dollar.

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