China Stocks end mixed; COVID outbreak offset stimulus hopes

Mainland China share market finished session in the mixed fashion on Thursday, 24 November 2022, as concerns over worsening COVID-19 outbreaks overshadowed optimism from fresh economic stimulus.

At close of trade, the benchmark Shanghai Composite Index was down 0.25%, or 7.60 points, to 3,089.31. The Shenzhen Composite Index, which tracks stocks on China's second exchange, was up 0.13%, or 2.63 points, to 1,998.15. The blue-chip CSI300 index fell 0.44%, or 16.72 points, to 3,756.81.

China has recorded its highest number of daily Covid cases since the pandemic began, despite stringent measures designed to eliminate the virus. Several major cities including the capital Beijing and southern trade hub Guangzhou are experiencing outbreaks which dimmed growth prospects, even as the government rolled out a series of policies to support the troubled property sector, and flagged plans to cut banks' reserve requirement ratio (RRR) to aid the economy. Wednesday saw 31,527 cases recorded compared with an April peak of 28,000.

CURRENCY NEWS: China's yuan strengthened against the dollar on Thursday. Prior to market opening on Friday, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at 7.1201 per US dollar, 80 pips firmer than the previous fix of 7.1281. In the spot market, onshore yuan opened at 7.1480 per dollar and was changing hands at 7.1401 at midday, 179 pips firmer than the previous late session close.

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