China: Market rises after week-long holiday

Mainland China share market finished session modestly higher on the first trading day after the week-long Lunar New Year holidays on Monday, 30 January 2023, as investors cheered signs of economic recovery suggested by robust holiday spending and tourism data. Meanwhile, a commitment from the government to boost spending and support economic growth also aided sentiment.

At close of trade, the benchmark Shanghai Composite Index advanced 0.14%, or 4.50 points, to 3,269.32. The Shenzhen Composite Index, which tracks stocks on China's second exchange, climbed up 1.16%, or 24.56 points, to 2,150.36. The blue-chip CSI300 index was up 0.47%, or 19.82 points, to 4,201.35.

Official data showed that Lunar New Year holiday trips inside China surged 74% from last year after authorities scrapped COVID-19 travel curbs. 2023's Lunar New Year celebrations were the first in three years to occur without any anti-COVID restrictions, after the country began scaling back its strict zero-COVID policy in December.

CURRENCY NEWS: China's yuan strengthened against the dollar on Monday, inline with firmer mid-point fixing by China's central bank. Prior to market opening, the People's Bank of China (PBOC) set the yuan's midpoint rate CNY=PBOC at 6.7626 per dollar, 76 pips or 0.11% firmer than the previous fix of 6.7702. In the spot market, the spot yuan CNY=CFXS opened at 6.7450 per dollar and was trading at 6.7562 around late afternoon, 393 pips firmer than the previous late session close.

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