China Stocks end lower on COVID worries

Mainland China share market finished session lower on Monday, 19 December 2022, as sentiment was impacted after reports of rising COVID-19 infections in the country.

The country is facing an unprecedented spike in COVID-19 cases after it scaled back several lockdown measures earlier this month, which markets fear could delay a broader reopening in the country.

At close of trade, the benchmark Shanghai Composite Index dropped 1.92%, or 60.74 points, to 3,107.12. The Shenzhen Composite Index, which tracks stocks on China's second exchange, fell 1.78%, or 36.32 points, to 2,003.20. The blue-chip CSI300 index was down 1.54%, or 61.01 points, to 3,893.22.

ECONOMIC NEWS: China's business confidence fell to 48.1 in December from 51.8 in November, a survey by World Economics showed on Monday, reflecting the impact of surging COVID-19 cases on economic activity with the abrupt lifting of many pandemic control measures.

CURRENCY NEWS: The Chinese currency eased against the U.S. dollar on Monday, despite stronger mid-point fixing by central bank. Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.9746 per dollar, 45 pips, or 0.06% firmer than the previous fix 6.9791. In the spot market, the onshore yuan CNY=CFXS opened at 6.9700 per dollar and was changing hands at 6.9831 at midday, 81 pips weaker than the previous late session close.

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