China Market rises 0.41%

Headline indices of the Mainland China equity market closed higher on Thursday, 24 January 2019, on the back of gains in financial firms' profits and as the approval for a new technology board in Shanghai. China has approved a plan to set up a Nasdaq-style board for tech companies in Shanghai aimed at improving their ability to raise funds. At closing bell, the benchmark Shanghai Composite Index rose 0.41%, or 10.69 points, to 2,591.69. The Shenzhen Composite Index, which tracks stocks on China's second exchange, was up 0.46%, or 0.6.02 points, to 1,322.30. The blue-chip CSI300 index was up 0.56%, or 17.73 points, to 3,158.78.

China's economy can maintain sustainable rates of growth despite global uncertainties, Vice President Wang Qishan said on Wednesday, days after the world's second-largest economy posted its weakest expansion in nearly three decades.

Sectors of electronic device and aircraft manufacturing gained most, with the sub-indexes rising 1.79% and 1.57%, respectively. Hunan Corun New Energy surged by the daily limit of 10% to close at 4.82 yuan per share, and Sichuan Haite High-Tech increased 3.72% to close at 10.59 yuan.

China Merchants Bank shares rose 2.36% after the company said its preliminary net profit was up nearly 15% in 2018.

CURRENCY NEWS: The People's Bank of China (PBOC) set the yuan reference rate at 6.7802, stronger by 167 basis points from the previous day's fix of 6.7969. In China's spot foreign exchange market, the yuan is allowed to rise or fall by 2% from the central parity rate each trading day. Onshore spot yuan was changing hands at 6.7866 at midday, 44 pips stronger than the previous late session close and 0.09 percent softer than the midpoint, after opening at 6.7896 per dollar. The offshore yuan was trading 0.15 percent weaker from the onshore spot at 6.7965 per dollar.

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