China Market gains 0.44%

The Mainland China share market finished session higher on Monday, 05 July 2021, as Beijing pledged continued policy support for its tech sector. Six of China's ministries including Ministry of Industry and Information Technology pledged on Friday to foster outstanding manufacturers and support qualified companies to get financing from the capital markets.

At closing bell, the benchmark Shanghai Composite Index was up 0.44%, or 15.56 points, to 3,534.32. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 0.74%, or 17.62 points, to 2,414.40. The blue-chip CSI300 index added 0.09%, or 4.67 points, to 5,085.79.

The best performing sectors in the Shanghai Stock Exchange were Rare Metals (up 7.1%), Other Non-ferrous Metal (up 6.5%), Glass (up 5.7%), Property & Casualty Insurance (up 4.9%), and Chemical Materials (up 4.5%), while the worst performing sectors were Farm Machinery (down 7.9%), Food Distributor (down 7.8%), Packaged Foods & Meats (down 3%), Chemical Medicine (down 2.6%), and Paint (down 2.6%).

The best performing sectors in the Shenzhen Stock Exchange were Rare Metals (up 8%), Environmental Protection Engineering (up 6%), Automobile (up 4.4%), Oil & Gas Equipment & Services (up 4.4%), and Semiconductors (up 4.1%), while the worst performing sectors were Shoes (down 3.8%), Movies & Entertainment (down 3.3%), Pharmaceutical & Biotechnology Services (down 3%), Paper Products (down 2.8%), and Commercial Vehicle (down 2.5%).

ECONOMIC NEWS: China Caixin Services Activity Slows To 14-Month Low- China Caixin Services PMI fell to a 14-month low of 50.3 in June 2021 from 55.1 in the prior month, amid an uptick in local COVID-19 cases and travel restrictions. It held just above the 50-mark, which separates growth from contraction on monthly basis. The Composite Output Index dropped from 53.8 in May to 50.6 in June, signaled a weakening services sector expansion. Looking ahead, sentiment remained strongly upbeat, though the degree of positive sentiment slipped to a nine-month low, amid concerns over the epidemic situation at home and abroad.

CURRENCY NEWS: China yuan went up against the dollar on Monday, after firmer 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 6.4695 per dollar, stronger by 17 pips from the previous fix of 6.4712. In the spot market, onshore yuan CNY=CFXS was last quoted at 6.4628, firmer by 92 pips from the previous late session close.

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