China Stocks rebound on more PBOC easing hopes

The Mainland China share market finished session higher on Wednesday, 12 January 2022, on tracking gains in other Asia-Pacific markets as comments from the Fed chief appeared to reassure investors, with further decline in inflationary pressure in the county in December added support as the stage appears set for further monetary policy easing in China.

At close of trade, the benchmark Shanghai Composite Index advanced 0.84%, or 29.99 points, to 3,597.09. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 1.42%, or 34.59 points, to 2,475.82. The blue-chip CSI300 index increased 1%, or 47.81 points, to 4,845.58.

The National Bureau of Statistics said today that consumer prices in China were up 1.5% year-on-year in December, down sharply from 2.3% in November. The bureau also said that producer prices climbed an annual 10.3%, slowing from 12.1% a month earlier. Lower inflation opens room for the government to loosen monetary policies further.

CURRENCY NEWS: China's yuan was up against the U.S. dollar on Wednesday, after stronger mid-point fixing by the central bank. Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.3658 per dollar, up from the previous fix 6.3684.

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