China Stocks falls 1.07%

Mainland China share market finished session lower on Tuesday, 20 December 2022, as the People's Bank of China kept its key lending rates steady and a surge in COVID-19 cases, which has offset optimism over loosening strict pandemic restrictions.

At close of trade, the benchmark Shanghai Composite Index dropped 1.07%, or 33.35 points, to 3,073.77. The Shenzhen Composite Index, which tracks stocks on China's second exchange, fell 1.2%, or 24.12 points, to 1,979.08. The blue-chip CSI300 index was down 1.65%, or 64.20 points, to 3,829.02.

The People's Bank of China maintained its one-year loan prime rate at 3.65% and its five-year loan prime rate at 4.30% in December

China is pushing on with easing restrictions after three years of COVID-19 lockdowns which is leaving to investors to question how financial markets will react to the reopening.

CURRENCY NEWS: The Chinese currency appreciated against the U.S. dollar on Tuesday, despite softer mid-point fixing by central bank. Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.9861 per dollar, 0.16% weaker than the previous fix 6.9746. In the spot market, the onshore yuan CNY=CFXS opened at 6.9815 per dollar and was changing hands at 6.9801 at midday, 17 pips stronger than the previous late session close and -0.09% away from the midpoint.

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