China Stocks end higher

Headline indices of the Mainland China equity market closed higher on Monday, 27 April 2020, in line with global peers, amid hopes for further stimulus to arrest the coronavirus outbreak's economic impact. Meanwhile, reports of drop in fresh coronavirus cases domestically also underpinned sentiments. At closing bell, the benchmark Shanghai Composite Index advanced 0.25%, or 6.97 points, to 2,815.50. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 0.06%, or 1.12 points, to 1,738.05. The blue-chip CSI300 index rose 0.68%, or 25.80 points, to 3,822.77.

The top body of China's parliament kicked off its four-day bi-monthly meeting in the capital city of Beijing on Sunday. The Standing Committee of the National People's Congress is expected to decide on the date of the key annual meeting of parliament this year on Wednesday.

China reported three new confirmed coronavirus cases on April 26, down from 11 a day earlier, with no new deaths, the country's health authority said on Monday. The Chinese city of Wuhan, where the global coronavirus pandemic began, now has no remaining cases in its hospitals, a health official told reporters on Sunday.

ECONOMIC NEWS: China's Bureau of National Statistics announced that profits at big industrial firms declined 36.7% to 781.45 billion yuan ($110 billion) in the first quarter as the coronavirus forced authorities to shut factories and hammered demand for industrial products. In breakdown, profits of the manufacturing and mining industries went down 38.9% and 27.5%, respectively, while that of the production and supply of electricity, thermal power, gas and water reported a year-on-year decrease of 28.6%. Revenue of the major industrial firms amounted to 19.86 trillion yuan in Q1, down 15.1% year on year, and their business costs skidded 14.6% to 16.83 trillion yuan during the period.

CURRENCY NEWS: China's yuan was up against the dollar on MOnday, inline with firm mid-point fixing by central bank. Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at a one-week high of 7.0703 per dollar, 100 pips or 0.14% firmer than the previous fix of 7.0803. In the spot market, the onshore yuan CNY=CFXS opened at 7.0710 per dollar and was changing hands at 7.0785 at midday, 38 pips firmer than the previous late session close.

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