China Socks tumble on western sanctions

The Mainland China share market finished session lower on Tuesday, 23 March 2021, as risk sentiments soured amid western sanctions against on Chinese officials over human rights abuses in Xinjiang and and lingering worries over policy tightening.

At closing bell, the benchmark Shanghai Composite Index stumbled 0.93%, or 31.93 points, to 3,411.51. The Shenzhen Composite Index, which tracks stocks on China's second exchange, dropped 1.13%, or 25.01 points, to 2,197.71. The blue-chip CSI300 index fell 0.95%, or 47.90 points, to 5,009.25.

The Mainland China market suffered a risk aversion selloff amid escalation of EU-China Tensions. A coalition of western nations (The United States, the European Union, Britain and Canada) announced sanctions on Chinese officials for alleged human rights abuses against Uyghur Muslims. China immediately announced retaliatory sanctions against the EU that appeared broader, including European lawmakers, diplomats, institutes and families, and banning their businesses from trading with China.

CURRENCY NEWS: China's yuan softened against the dollar on Friday despite firmer mid-point fixing by the central bank. The People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.5036 per dollar, from 6.5191 on Monday. The spot yuan CNY=CFXS opened at 6.5075 per dollar, but eased to 6.5098 by midday, 14 pips softer than Monday's late-session close.

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