China Stocks fall 0.6%

The Mainland China share market finished session lower on Friday, 11 June 2021, after data showed the country's broader credit growth continued to slow in May as the central bank seek to contain rising debt.

At closing bell, the benchmark Shanghai Composite Index declined 0.58%, or 21.11 points, to 3,589.75. The Shenzhen Composite Index, which tracks stocks on China's second exchange, fell 0.6%, or 14.65 points, to 2,407.93. The blue-chip CSI300 index dropped 0.89%, or 46.77 points, to 5,224.70.

The best performing sectors in the Shanghai Stock Exchange were Air Freight (up 10%), Vintners & Others (up 5.8%), New Energy Power (up 5.8%), Soft Drinks (up 4.8%), and Integrated Oil & Gas (up 4.3%), while the worst performing sectors were Financial Exchanges & Data (down 6%), Aerospace & Defense (down 4.8%), Property & Casualty Insurance (down 4%), Optoelectronic Devices (down 4%), and Industrial Conglomerates (down 3.7%).

The best performing sectors in the Shenzhen Stock Exchange were Aluminum (up 4%), Automobile (up 3.8%), Plastics (up 3.3%), Railway Equipment (up 3%), and Health Care Technology (up 3%), while the worst performing sectors were Other Communications Equipment (down 4.5%), Financial Exchanges & Data (down 3.9%), Commercial Vehicle (down 3.7%), Diversified Banks (down 3.4%), and Motorcycle (down 3.3%).

ECONOMIC NEWS: China's credit expansion was largely steady in May after a sharp slowdown in the previous month, as the central bank seeks to scale back stimulus in a gradual manner to prevent risks. Aggregate financing was 1.9 trillion yuan ($297 billion), the People's Bank of China said Thursday, unchanged from April and lower than 3.2 trillion yuan in the same month last year. Financial institutions offered 1.5 trillion yuan of new loans in the month, up from 1.47 trillion yuan in April. In May, broad M2 money supply grew 8.3%, slightly above the previous month's pace of 8.1%, which was the slowest since July 2019.

CURRENCY NEWS: China yuan was up against the dollar on friday, after 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 6.3856 per dollar, 0.18% firmer than the previous fix of 6.3972. In the spot market, onshore yuan CNY=CFXS was changing hands at 6.3868 at around late afternoon, 0.9% stronger than the previous late session close at 6.3928.

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