China Stocks mixed on COVID-19 worries

Mainland China shares were mixed for second straight day on Friday, 25 November 2022, with the Shanghai Composite Index closing up 0.4%, while the Shenzhen Composite Index declined 0.7%, as risk sentiments remained subdued amid concerns over worsening COVID-19 conditions in China even though the country's latest measures to support the beleaguered property sector.

At close of trade, the benchmark Shanghai Composite Index was up 0.4%, or 12.38 points, to 3,101.69. The Shenzhen Composite Index, which tracks stocks on China's second exchange, was down 0.7%, or 13.96 points, to 1,984.18. The blue-chip CSI300 index added 0.5%, or 18.97 points, to 3,775.78.

Asia's largest economy is struggling with a record-high jump in daily COVID-19 cases, which saw the reintroduction of strict curbs in several major cities and also sparked public unrest in "iPhone City" Zhengzhou.

China has reported another record high of new local Covid-19 cases on Thursday, totalling 32,695, as cities across the country enforce measures and curbs to control outbreaks. Thursday's new cases set a daily record for a second consecutive day.

The continuous surge in Covid cases has rekindled traders' concern about the slowing economy, and doubts about whether more monetary easing policies could achieve its goal of stimulating growth.

China's biggest commercial banks have pledged at least $162 billion in fresh credit to property developers, bolstering recent regulatory measures rolled out to ease a stifling cash crunch in the sector and lifting property shares.

CURRENCY NEWS: China's yuan weakened against the dollar on Friday, inine with softer mid-point fixing. Prior to market opening on Friday, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at 7.1339 per US dollar, weaker than the previous fix 7.1201. In the spot market, onshore yuan opened at 7.1650 per dollar and was changing hands at 7.1585 at midday, 45 pips weaker than the previous late session close and 0.34% away from the midpoint.

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