China: Stocks extend losses on COVID woes

Mainland China share market finished session lower on Friday, 23 December 2022, extending yesterday losses, as worsening COVID outbreak revived concerns about the hit to growth in the world's second-largest economy. Meanwhile, concerns over a hawkish U.S. Federal Reserve also dragged on markets.

At close of trade, the benchmark Shanghai Composite Index dropped 0.28%, or 8.56 points, to 3,045.87. The Shenzhen Composite Index, which tracks stocks on China's second exchange, fell 0.28%, or 5.56 points, to 1,950.02. The blue-chip CSI300 index was down 0.2%, or 7.81 points, to 3,828.22. for the week, the Shanghai Composite declined 3.85% and the CSI 300 Index was down 3.2%.

New analysis revealed the country is likely experiencing 1 million COVID infections and 5,000 virus deaths every day.

China is expecting a peak in COVID-19 infections within a week, a health official said, with authorities predicting extra strain on the country's health system even as they downplay the disease's severity and continue to report no new deaths.

CURRENCY NEWS: The Chinese currency declined against the U.S. dollar on Wednesday, despite firmer mid-point fixing by central bank. Prior to the market's opening, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.981 per dollar, 97 pips weaker than the previous fix 6.9713. In the spot market, the onshore yuan CNY=CFXS opened at 6.9966 per dollar and was changing hands at 6.9855 at midday, 21 pips stronger than the previous late session close and 0.06% away from the midpoint.

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