China Stocks fall after mixed economic data

The Mainland China share market closed session lower on Monday, 18 April 2022, as risk-off selloff continued after a move to easing by the People's Bank of China was less than expected. Meanwhile, sentiments were also dampened by surging COVID cases in China and after release of mixed bag of economic data.

At close of trade, the benchmark Shanghai Composite Index declined 0.49%, or 15.72 points, to 3,195.52. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 0.43%, or 8.65 points, to 2,022.52. The blue-chip CSI300 index sank 0.53%, or 22.37 points, to 4,166.38.

A dozen Chinese cities, including the financial hub of Shanghai, have been hit by latest wave of COVID-19 infections, raising concern of further disruptions and damage to the broader economy in the second quarter.

ECONOMIC NEWS: China's GDP grew an annual 4.8% during January to March, picking up pace from a 4% increase in the fourth quarter last year, data from the National Bureau of Statistics showed on Monday. The Chinese government has set a growth target for this year of around 5.5%.

Separate data showed retail sales declined 3.5% in March from a year ago, marking the first drop since July 2020. Industrial production grew by 5% in March, compared with 7.5% in the first two months of the year. Unemployment in 31 major cities surged to 6% in March, a record high.

CURRENCY NEWS: China's yuan was down against the U.S. dollar despite firmer mid-point fixing by the central bank. Prior to market opening, the People's Bank of China set the midpoint rate CNY=PBOC at 6.3763 per dollar, 133 pips or 0.2% firmer than the previous fix 6.3896. In the spot market, CNY=CFXS opened at 6.3734 per dollar and was changing hands at 6.3735 at midday, 24 pips away from the previous late session close.

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