China Market gains 0.57%

The Mainland China share market finished session higher on Thursday, 23 December 2021, as investors adopted a more optimistic stance about the economic outlook, thanks to signs of government support measures.

However, market gains capped amid worries over the economic fallout from the coronavirus variant after the major Chinese city of Xi'an entered a lockdown on Thursday as authorities seek to control a flare-up of Covid cases.

At close of trade, the benchmark Shanghai Composite Index advanced 0.57%, or 20.72 points, to 3,643.34. The Shenzhen Composite Index, which tracks stocks on China's second exchange, rose 0.18%, or 4.45 points, to 2,524.74. The blue-chip CSI300 index advanced 0.7%, or 34.29 points, to 4,948.74.

Resource stocks were among the top gainers in the bourse, with rare earth-related firms leading the charge after reports that China has set up a national rare earths company that will operate under the state asset regulator. Shares of China Minmetals Rare Earth Co, which will hold 20.3% of the newly-established conglomerate, inched up 0.3%.

Three firms started trading for the first time on the mainland. Yongan Futures Co soared 44%, Nantong Chaoda Equipment surged 117% and Henan Carve Electronics Technology jumped 78%.

CURRENCY NEWS: China's yuan was little changed against the U.S. dollar on Thursday after firmer mid-point fixing by the central bank. Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.3651 per dollar, 0.08% firmer, than the previous fix of 6.3703. In the spot market, the onshore yuan CNY=CFXS was changing hands at 6.3708 per dollar, 0.01% down from the previous late session close.

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