China Stocks gain on bargain hunting

Headline shares of the Mainland China equity market were tad higher on Tuesday, 11 December 2018, as investors chased for bottom fishing on heavily battered stocks after reports of further discussions on trade between the U.S. and China. In afternoon trade, the benchmark Shanghai Composite Index was up 0.3%, or 7.17 points, to 2,591.75, meanwhile the Shenzhen Composite Index, which tracks stocks on China's second exchange, added 0.6%, or 7.95 points, to 1,340.48. The blue-chip CSI300 index was up 0.3%, or 9.18 points, to 3,153.94.

The U.S. and China started the latest round of trade talks late Monday with a phone call involving Treasury Secretary Steven Mnuchin, U.S. Trade Representative Robert Lighthizer and Chinese Vice Premier Liu He. As per reports, the three senior officials discussed Chinese purchases of agricultural products and changes to fundamental Chinese economic policies during the phone call, said people familiar with the conversation.

CURRENCY NEWS: China yuan weakened against greenback on Tuesday, after central bank lowered mid-point rate by the most in more than three months today. Prior to market opening, the People Bank of China set the yuan reference rate at 6.8996, weaker by 303 pips or 0.44 per cent than the previous fix of 6.8693 yesterday, was the lowest setting since December 3. In China's spot foreign exchange market, the yuan is allowed to rise or fall by 2% from the central parity rate each trading day.

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