China Stocks extend losses to third day

Mainland China share market finished lower for third straight session on Friday, 18 November 2022, amid lingering concerns over rising COVID-19 cases and its impact on economy.

At close of trade, the benchmark Shanghai Composite Index declined 0.58%, or 18.19 points, to 3,097.24. The Shenzhen Composite Index, which tracks stocks on China's second exchange, fell 0.48%, or 9.89 points, to 2,029.32. The blue-chip CSI300 index decreased by 0.45%, or 1709 points, to 3,801.57.

China is grappling with its worst outbreak in seven months, which has caused widespread disruption in the country. The country is now expected to see a further cooling in economic activity due to COVID lockdown measures.

The southern Chinese city of Guangzhou is setting up makeshift hospitals and quarantine sites with capacity for nearly 250,000 beds for COVID infections, officials said on Thursday, as cases across the country hit their highest level since April.

CURRENCY NEWS: China's yuan strengthened against the dollar on Friday, despite softer midpoint fixing by China's central bank, as higher seasonal corporate demand for the local currency.

Prior to market opening on Friday, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at 7.1091 per dollar, 436 pips or 0.6% weaker than the previous fix of 7.0655.

In the spot market, the onshore spot yuan CNY=CFXS opened at 7.1318 per dollar and was changing hands at 7.1255 at midday, 296 pips firmer than the previous late session close.

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