China Stocks fall on profit taking

Mainland China share market finished session lower on Wednesday, 16 November 2022, erasing some of yesterday's gain, as investors booked profit on economic growth concerns after latest data showed house prices in the country marked their worst fall in seven years in October.

Also, weighing sentiments was heightening concerns over geopolitical risks following reports that a Russia-made rocket killed two people in Poland.

At close of trade, the benchmark Shanghai Composite Index declined 0.45%, or 14.10 points, to 3,119.98. The Shenzhen Composite Index, which tracks stocks on China's second exchange, dropped 0.78%, or 16.09 points, to 2,038. The blue-chip CSI300 index decreased by 0.82%, or 31.58 points, to 3,834.39.

ECONOMIC NEWS: China's new house prices fell faster in October, by 0.37% month-on-month, compared to the 0.28% slip recorded in September, as the strict enforcement of Covid measures before the annual National Congress, as well as uncertainty over the economic outlook keeping house buyer wallets closed.

CURRENCY NEWS: China's yuan depreciated from two month high against the dollar on Wednesday, inspite of 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 at 7.0363 per dollar, 58 pips or 0.08% firmer than the previous fix of 7.0421. In the spot market, the onshore spot yuan CNY=CFXS opened at 7.0550 per dollar and was changing hands at 7.0802 by midday, 357 pips weaker than the previous late session close.

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