China Market rebounds on policy easing bets

The Mainland China share market finished session higher on Monday, 13 December 2021, as investors risk sentiments lifted up after the nation's top decision makers signaled to front-load policy support to stabilise growth next year and hinted at easing regulations on private companies.

At close of trade, the benchmark Shanghai Composite Index gained by 0.4%, or 14.73 points, to 3,681.08. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 0.6%, or 15.26 points, to 2,561.91. The blue-chip CSI300 index was up 0.57%, or 28.68 points, to 5,083.80.

China's top policymakers concluded its Central Economic Work Conference on Friday by pledging to keep economic growth within a reasonable range and maintain social stability. Beijing has pledged to front-load policies to shore up the economy next year, as leaders remained on high alert against strong headwinds at the tone-setting annual central economic work conference that concluded on Friday.

Beijing also hinted it would go easier on regulation of big private players after a heavy-handed crackdown this year jolted domestic markets, and excessive capital growth may instead be curbed with a type of 'traffic-light' mechanism

CURRENCY NEWS: China's yuan was up against the U.S. dollar on Friday 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 6.3669 per dollar prior to market open, firmer than the previous fix of 6.3702. In the spot market, the onshore yuan CNY=CFXS was changing hands at 6.3622 by midday, 78 pips stronger than Friday's late-session close.

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