China Market slips on first trading day of 2022

The Mainland China share market finished session lower on Tuesday, 04 January 2022, as Beijing's new cybersecurity rules overshadowed data showing signs of accelerating factory activity growth in December. At close of trade, the benchmark Shanghai Composite Index declined 0.2%, or 7.45 points, to 3,632.33. The Shenzhen Composite Index, which tracks stocks on China's second exchange, fell 0.1%, or 2.44 points, to 2,527.70. The blue-chip CSI300 index dropped 0.46%, or 22.60 points, to 4,917.77.

Shares of tech companies declined after China's cyberspace regulator said it would implement new rules from Feb. 15 that require platform companies with data for more than 1 million users to undergo a security review before listing their shares overseas.

ECONOMIC NEWS: China Caixin Manufacturing PMI Rebounds In December- China's manufacturing sector rebounded in December as firms signaled the strongest growth in output for a year amid a renewed uptick in total sales, survey results from IHS Markit showed on Tuesday. The Caixin manufacturing Purchasing Managers' Index rose to 50.9 in December from 49.9 in November. The reading was forecast to rise marginally to 50.0. A reading above 50.0 indicates expansion in the sector. Although marginal, the rate of improvement was the strongest seen since June, the survey showed.

CURRENCY NEWS: China's yuan was down against the U.S. dollar on Thursday after softer 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 6.3794 per dollar, 37 pips weaker than the previous fix 6.3757. In the spot market, the onshore yuan CNY=CFXS was changing hands 6.3721 around late afternoon, 0.27% lower than the previous late session close of 6.355.

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