China Market hits three months low

The Mainland China share market finished lower for second straight session on Wednesday, 24 March 2021, as investors remained wary about a slowdown in the global economic recovery from the pandemic amid spikes in coronavirus cases in major economies, including Germany, France and Italy. Meanwhile, policy tightening concerns and escalating tensions between the West and China also sapped risk appetite.

At closing bell, the benchmark Shanghai Composite Index stumbled 1.3%, or 44.45 points, to 3,367.06, the lowest level since December 11, 2020. The Shenzhen Composite Index, which tracks stocks on China's second exchange, dropped 1.41%, or 30.96 points, to 2,166.75. The blue-chip CSI300 index fell 1.61%, or 80.56 points, to 4,928.69.

Chinese shares fell for the second straight day due to growing concerns about a slowdown in the global economic recovery from the pandemic amid a resurgence of COVID-19 cases in Europe which have led to lockdowns being extended in Germany, France and Italy. In Europe, authorities continue to struggle with the virus as the region battles a third Covid wave.

The United States, the European Union, Britain and Canada imposed sanctions on Chinese officials on Monday for human rights abuses in Xinjiang, and Beijing hit back immediately with broad punitive measures against the EU.

In Shanghai, China Merchants Bank fell 2.4% to 52.20 yuan, while China Tourism Group Duty Free dropped 1.7% to 295.04 yuan.

Two companies surged on their debut. Jahen Household Products, which manufactures plastic products, rose 323.5% to 70 yuan from its listing price of 16.53 yuan in Shenzhen. Nantong Xingqiu Graphite Equipment gained 84.1% to 61.90 yuan from its offer price of 33.62 yuan in Shanghai.

CURRENCY NEWS: China's yuan softened to a two-week low against the dollar on Wednesday after weaker mid-point fixing by the central bank. Prior to market open, the People's Bank of China set the midpoint rate at 6.5228 per dollar, 192 pips weaker than the previous fix of 6.5036. The yuan opened at 6.5180 per dollar in the spot market and hit 6.5263, lits weakest since March 9, before steadying to 6.5223, weaker by 63 pips than the previous late session close.

Powered by Capital Market - Live News