China Market gains on upbeat industrial profit data

The Mainland China shares finished session higher on Friday, 27 November 2020, as investors sentiments bolstered up after better than expected industrial profit data for October boosted hopes of a swift rebound in the region in the months ahead.

At closing bell, the benchmark Shanghai Composite Index advanced 1.14%, or 38.57 points, to 3,408.31. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 0.34%, or 7.65 points, to 2,253.12. The blue-chip CSI300 index rose 1.24%, or 61.18 points, to 4,980.77.

Profits at China's industrial firms grew in October for a sixth consecutive month and at their quickest pace since early 2017, pointing to a steady recovery in the manufacturing sector after it was hard hit by the COVID-19 pandemic. Profits at Chinese industrial firms surged 28.2% year-on-year in October to 642.91 billion yuan, National Bureau of Statistics (NBS) data showed on Friday, after rising 10.1% in September versus the previous year. For the January-October period, industrial firms' profits rose 0.7% on an annual basis, after falling 2.4% in the first nine months of 2020 compared with the same period last year.

CURRENCY NEWS: The yuan inched lower against the dollar on Friday, pressured by seasonal corporate demand for the greenback. Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.5755 per dollar, 25 pips firmer than the previous fix of 6.578. The onshore yuan CNY=CFXS opened at 6.5722 per dollar and was changing hands at 6.5787 at midday, 46 pips weaker than the previous late session close.

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