China Market falls for 4th day

Mainland China share market finished lower for a four straight session on Monday, 19 September 2022, despite the central bank injecting liquidity, as caution ahead of the despite the central bank injecting liquidity, as caution ahead of the 13 central bank meetings this week that are certain to see borrowing costs rise across the globe and some risk of a super-sized hike in the US.

China's central bank lowered the borrowing cost of 14-day reverse repos by 10 basis points on Monday and injected 2 billion yuan ($286.54 million) through 7-day reverse repos and another 10 billion yuan through the 14-day tenor.

At close of trade, the benchmark Shanghai Composite Index declined 0.35%, or 10.80 points, to 3,115.60. The Shenzhen Composite Index, which tracks stocks on China's second exchange, dropped 0.76%, or 15.24 points, to 1,990.36. The blue-chip CSI300 index decreased by 0.12%, or 4.68 points, to 3,928.

CURRENCY NEWS: China's yuan softened against the dollar on Monday, after weaker official midpoint fixings. Prior to market opening, the People's Bank of China (PBOC) set midpoint rate CNY=PBOC at 6.9396 per dollar, 91 pips or 0.13% weaker than the previous fix of 6.9305 on Friday. In the spot market, the onshore yuan CNY=CFXS opened at 6.9900 per dollar and was changing hands at 7.0080 at midday, 375 pips weaker than the previous late session close.

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