China Market rises on policy support hopes

The Mainland China share market finished session higher on Monday, 09 August 2021, as investors' chased for bargain hunting on hopes of fresh policy easing after weaker than expected official consumer price growth data, while factory-gate price inflation in China remained high in July.

At closing bell, the benchmark Shanghai Composite Index rose 1.05%, or 36.41 points, to 3,494.64. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 0.81%, or 19.78 points, to 2,462.84. The blue-chip CSI300 index was up 1.3%, or 64 points, to 4,985.56.

Shares of Westone Information Industry Inc surged 10% to 31.52 yuan after reports that it would be the main third-party company to manage Chinese ride-hailing firm Didi Global Inc's massive data stored domestically.

ECONOMIC NEWS: China Consumer Prices Up 1% On Year In July- China consumer prices were up 1% on year in July, the National Bureau of Statistics said on Monday, down from 1.1% in June. On a monthly basis, consumer prices rose 0.3% following the 0.4% contraction in the previous month. Beijing has set a 2021 CPI growth target of around 3%, compared with around 3.5% last year.

Factory-gate price inflation in China remained high in July, data released on Monday showed. The producer price index (PPI), which reflects the prices that factories charge wholesalers for their products, rose by 9% in July from a year earlier, from a gain of 8.8% in June the National Bureau of Statistics (NBS) said.

CURRENCY NEWS: China yuan was up against the dollar on Monday, despite softer mid-point fixing by central bank. Prior to the market opening, the People's Bank of China (PBOC) set the midpoint rate at 6.4840 per dollar, 215 pips weaker than the previous fix of 6.4625, the weakest since July 29. In the spot market, onshore yuan opened at 6.4830 per dollar and was changing hands at 6.4769 at midday, 76 pips firmer than the previous late session close.

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