China Stocks extend losses on Thursday

Mainland China share market finished session lower on Thursday, 17 November 2022, extending yesterday's losses, as a spike in COVID-19 cases in the southern province of Guangdong sparked worries over a return to broader lockdowns.

Guangzhou, a city of nearly 19 million in Guangdong province, reported a rise in COVID-19 infections in data released on Thursday and is now the largest among China's recent outbreaks. The surge in covid infections cases tempered recent enthusiasm over signs that China was easing its strict policy on COVID-related restrictions.

At close of trade, the benchmark Shanghai Composite Index declined 0.15%, or 4.54 points, to 3,115.44. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 0.06%, or 1.21 points, to 2,039.21. The blue-chip CSI300 index decreased by 0.41%, or 15.73 points, to 3,818.66.

CURRENCY NEWS: China's yuan eased further from two month high against the dollar on Thursday, inline with firmer midpoint fixing by China's central bank. Prior to market opening on Friday, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC a at 7.0655 per dollar prior to the market open, weaker than the previous fix 7.0363. In the spot market, the onshore spot yuan CNY=CFXS opened at 7.0922 per dollar and was at 7.1313 at midday, 314 pips weaker than the previous late session close and 0.93 percent away from the midpoint.

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