China Stocks extend gains on optimism about economic revival

The Mainland China share market finished session higher on Tuesday, 09 June 2020, as risk sentiments boosted up on optimism that a global recovery from the fallout of the coronavirus is gathering pace after an easing of coronavirus lockdown measures. Meanwhile, reports of overseas funds inflow also boosted up buying sentiments.

At closing bell, the benchmark Shanghai Composite Index added 0.62%, or 18.34 points, to 2,956.11. The Shenzhen Composite Index, which tracks stocks on China's second exchange, rose 0.67%, or 12.44 points, to 1,869.33. The blue-chip CSI300 index was up 0.62%, or 25.08 points, down at 4,047.03.

Overseas capital continued to flow into the Chinese mainland for the 12th session in a row. On Tuesday, mainland markets saw a net influx of 4.63 billion yuan via the Stock Connect schemes linking Shanghai and Shenzhen with Hong Kong.

Stocks of nearly 70 listed companies soared by over 9%, while 13 declined by more than 9%. Culture and media shares were among the biggest gainers, with over 10 companies surging by the daily limit of 10%, including Lecron Industrial Development Group Co, Baofeng Group Co and COL Digital Publishing Group Co.

The pharmaceutical sector also led the rises, with Chongqing Taiji Industry Group Co, Zhejiang Jiuzhou Pharmaceutical Co and Shenzhen Hepalink Pharmaceutical Group Co all hitting the 10% daily cap.

Haoxiangni Health Food surged by the 10% daily limit after saying that it plans to buy back up to 43.8% of its stake for 2.94 billion yuan (US$415.5 million).

CURRENCY NEWS: The yuan weakened 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 7.0711 per dollar, 171 pips or 0.24% firmer than the previous fix of 7.0882. The onshore yuan CNY=CFXS opened at 7.0702 per dollar and hovered at 7.0779 by midday, 78 pips weaker than the previous late session close.

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