China Stocks end softer on tightening worries

The Mainland China share market finished lower for the third straight session on Tuesday, 13 April 2021, as investor concerns that authorities could begin to tighten policy amidst signs of a solidifying recovery in the world's second-largest economy.

At closing bell, the benchmark Shanghai Composite Index fell 0.48%, or 16.48 points, to 3,396.47. The Shenzhen Composite Index, which tracks stocks on China's second exchange, fell 0.06%, or 1.32 points, to 2,187.57. The blue-chip CSI300 index declined 0.16%, or 8.11 points, to 4,939.64.

China's exports grew at a strong pace during March and imports rebounded giving investors heart that China's domestic demand is improving as part of the recovery from the pandemic. China's exports in dollar terms rose by 30.6% in March from one year earlier while imports jumped 38.1% compared to the same time last year. Consequently, the trade surplus stood at $13.8 billion.

Separately, new bank loans in China rose more than expected in March from the previous month due to strong corporate and household demand, as the central bank walks a tightrope between supporting the rapidly recovering economy and containing debt risks. China's central bank announced on Monday that lending in the first quarter hit a record high of 7.67 trillion yuan (US$1.17 trillion), as policymakers aided the recovery in the world's second-largest economy.

Three companies debuted on mainland bourses on Tuesday. Ningxia Xiaoming Agriculture & Animal Husbandry soared 581.7% to 30.95 yuan from its listing price of 4.54 yuan in Shenzhen. In Shanghai, WindSun Science & Technology, which manufactures power equipment, gained 53.7% to 22.25 yuan from its IPO price of 14.48 yuan. Biotechnology service provider Novogene added 114.7% to 27.40 yuan from its debut price of 12.76 yuan.

CURRENCY NEWS: China yuan inched lower against the dollar on Tuesday, despite firmer mid-point fixing by central bank. Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.5454 per dollar, 124 pips or 0.19% firmer than the previous fix of 6.5578. The onshore spot yuan CNY=CFXS opened at 6.5470 per dollar and was changing hands at 6.5502 at midday, 27 pips weaker than the previous late session close.

Powered by Capital Market - Live News