China Market ends lower on weakening renminbi

Mainland China share market finished lower for second straight session on Friday, 22 March 2024, amid lingering concerns over sluggish growth and persistent weakness in the property market, coupled with concerns that the government still has yet to announce strong stimulus to bolster the economy.

At close of trade, the benchmark Shanghai Composite index was down 0.94%, or 29.08 points, to 3,048.03. The Shenzhen Composite Index, which tracks stocks on China's second exchange, dropped 1.22%, or 22.01 points, to 1,782.30. The blue-chip CSI300 index sank 1.01%, or 36.09 points, to 3,545.

Foreign investors sold 3.1 billion yuan of Chinese shares on a net basis via the Stock Connect during the day, a second straight session of outflows.

CURRENCY NEWS: China's yuan depreciated to four-month low against the dollar on Friday, as weaker mid-point fixing. Prior to the market's opening, the People's Bank of China set the midpoint rate at 7.1004 per dollar, 62 pips weaker than the previous fix of 7.0942. In the spot market, the onshore yuan CNY=CFXS yuan fell to the psychologically important 7.2 per dollar level to hit a low of 7.24, its softest since Nov. 17, 2023.

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