China Stocks end mixed on economic uncertainties

The Mainland China equity market closed mixed on Monday, 17 June 2019, as risk-sentiments turned sour on weaker than expected China's industrial output growth in May and simmering trade dispute between the United States and China. Meanwhile, caution ahead of the highly-anticipated meeting between Presidents Xi Jinping and Donald Trump at the G20 summit in Japan at the end of this month also kept investors on the edge. At closing bell, the benchmark Shanghai Composite Index rose 0.2%, or 5.65 points, to 2,887.62. The Shenzhen Composite Index, which tracks stocks on China's second exchange, shed 0.2%, or 2.93 points, to 1,502.12. The blue-chip CSI300 index edged down 0.00%, or 0.06 point, to 3,654.82.

Pharmaceutical companies related to the artemisinin surged, after Chinese scientist and Nobel laureate Tu Youyou said her team has made a breakthrough in solving the problem of artemisinin resistance to treat malaria. The discovery of artemisinin, a chemical compound in a traditional Chinese herb, has saved tens of millions of lives in Africa from malaria, a deadly mosquito-borne infectious disease. Harbin Gloria Pharmaceuticals jumped by the daily 10% limit, and so did Zhuhai Rundu Pharmaceutical. Two other firms surged by 10%, while a gauge tracking 11 related stocks rose 5.6%.

Rare earth stocks rose again, after a spokesman from the National Development and Reform Commission - China's top economic planning agency - said that China is firmly opposed to the use of rare earth products to contain its development, when asked if China will use the metal as a countermeasure against the US. Rising Nonferrous Metals Share rose 5.6% to 46.7 yuan, and China Minmetals Rare Earth added 1.4% to 18.27 yuan.

CURRENCY NEWS: China yuan was little changed against greenback on Monday, as the central bank kept its morning guidance rate largely steady. Prior to the market opening on Monday, the People's Bank of China (PBOC) set the midpoint rate at 6.8940 per dollar, 3 pips weaker than the previous fix of 6.8937.

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