China Stocks fall in worst global selloff

The Mainland China share market finished session lower on Thursday, 28 January 2021, as a poor Wall Street overnight performance spilled into local trade amid worsening Covid-19 health crisis and a downbeat economic outlook from the Federal Reserve. Meanwhile selloff pressure intensified on concerns that policymakers likely to shift to a tighter stance to rein in share prices and property markets.

At closing bell, the benchmark Shanghai Composite Index declined 1.91%, or 68.17 points, to 3,505.18. The Shenzhen Composite Index, which tracks stocks on China's second exchange, dropped 2.82%, or 68.16 points, to 2,852.75. The blue-chip CSI300 index shed 2.73%, or 150.86 points, to 5,377.14.

China's short-term money rates climbed for a fourth straight session, with some key tenors approaching the higher end of the interest rate corridor, as tight cash conditions persisted and market worries over a switch in authorities' policy stance mounted.

CURRENCY NEWS: China's yuan firmed up against the dollar despite the central bank set a softer midpoint, as tight interbank liquidity heading into Lunar New Year pushed money markets rates higher. China's short-term money rates climbed higher on Thursday, driven by persistently tight cash conditions in the interbank money market heading into the Lunar New Year holiday. Prior to the market open, the People's Bank of China (PBOC) set the midpoint rate at 6.4845 per dollar, weaker by 0.28% than the previous fix of 6.4665. The spot yuan was changing hands at 6.4789, firmer by 0.05% firmer than the previous session close at 6.4822.

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