China Market gains on COVID-19 vaccine developments

The Mainland China shares finished session higher on Monday, 23 November 2020, as risk sentiment aided by domestic and global economic recovery hopes, fuelled by COVID-19 vaccine progress. Also, supporting the market sentiment was the government's latest warning to douse any sign of systemic risk to the financial system.

At closing bell, the benchmark Shanghai Composite Index advanced 1.09%, or 36.76 points, to 3,414.49. The Shenzhen Composite Index, which tracks stocks on China's second exchange, rose 0.54%, or 12.45 points, to 2,301.96. The blue-chip CSI300 index climbed up 1.25%, or 61.74 points, to 5,005.03.

Investor enthusiasm surged on announcements by pharmaceutical companies about promising preliminary data from tests of possible vaccines. Drugmaker AstraZeneca said a study found the vaccine it is developing with the University of Oxford was up to 90% effective, depending on the regimen. Drugmaker Pfizer and biotech Moderna, using a different technique, found their vaccines about 95% effective, and the U.S. may begin vaccinations the day after Food and Drug Administration approval.

CURRENCY NEWS: The yuan edged lower against the dollar on Monday. The spot market CNY=CFXS opened at 6.5510 per dollar and was changing hands at 6.5642 at midday, 20 pips weaker than the previous late session close.

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