China: Stocks slip on fresh COVID restrictions

Mainland China share market finished session in the red on Monday, 21 November 2022, registering fourth days of losing streak, as worsening COVID-19 infection numbers across the country and fresh mobility restrictions dented market sentiment.

At close of trade, the benchmark Shanghai Composite Index declined 0.39%, or 12.20 points, to 3,085.04. The Shenzhen Composite Index, which tracks stocks on China's second exchange, fell 0.04%, or 0.81 points, to 2,028.51. The blue-chip CSI300 index decreased by 0.85%, or 32.44 points, to 3,769.13.

China is grappling with its worst outbreak in seven months, which had seen several cities placed under lockdown. Beijing's most populous district urged residents to stay at home on Monday, while local authorities in the Baiyun District of the southern Chinese city of Guangzhou locked down the area for five days as COVID-19 cases continue to mount. Many businesses in the district were shut and schools shifted classes online.

The Beijing government reported on Sunday that one person had died from the coronavirus, the first in mainland China in around six months amid rising infections. Official data showed that China had 27,095 new COVID infections on Nov. 20, the most in more than seven months.

CURRENCY NEWS: China's yuan eased against the dollar on Monday after softer 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 7.1256 per dollar, 165 pips or 0.23% weaker than the previous fix, 7.1091. In the spot market, the onshore spot yuan CNY=CFXS was changing hands at 7.1616 around later afternoon, 456 pips weaker than the previous late session close.

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