China Stocks end lower

The Mainland China share market finished session lower on Tuesday, 29 December 2020, as investors took profits following a recent rally fuelled by Beijing pledging more policy support. Meanwhile selloff fueled further the Trump administration on Monday strengthening an executive order barring US investors from buying securities of companies allegedly with ties to the Chinese military.

At closing bell, the benchmark Shanghai Composite Index fell 0.54%, or 18.25 points, to 3,379.04. The Shenzhen Composite Index, which tracks stocks on China's second exchange, dropped 0.64%, or 14.63 points, to 2,258.37. The blue-chip CSI300 index declined 0.42%, or 21.47 points, to 5,042.94.

Several sub-indexes recorded losses, with the material sub-index dropping 1.75%, while energy and manufacturing sector slipping by 1.73% and 1.35%, respectively.

Shares of companies on the forefront of pushing fifth-generation technology gained after Xiao Yaqing, head of the Ministry of Industry and Information Technology, said China will advance the 5G network construction and application next year and set up more than 600,000 5G stations.

Youzu Interactive added 2.5% to 12.27 yuan. It fell 10% on Monday, after its chairman and chief executive died on Christmas Day as police probed a suspected poisoning case.

CURRENCY NEWS: China's yuan appreciated against the dollar as the central bank set a firmer midpoint and as the dollar slipped to a near 2-1/2-year low against major peers after U.S. lawmakers pushed forward with a COVID-19 relief package and amid high year-end demand for cash. Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.5451 per dollar, 215 pips weaker, or 0.33%, than the previous fix of 6.5236. In the spot market, the onshore yuan CNY=CFXS opened at 6.5373 per dollar and was changing hands at 6.5318 at midday, 65 pips firmer than the previous late session close.

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