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China Market extends gains on Sino-U.S. trade hopes

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The Mainland China equity market closed higher for third straight sessions on Friday, 21 June 2019, bucking the regional trend, as risk sentiments strengthened on growing hopes for a trade deal between the two economic powerhouses at the upcoming G-20 summit and as regulators promised start-ups easier access to funding. At closing bell, the benchmark Shanghai Composite Index rose 0.5%, or 14.86 points, to 3,001.98. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 1.34%, or 20.84 points, to 1,577.44. The blue-chip CSI300 index inclined 0.14%, or 5.42 point, to 3,833.94.

Investors' focus has now shifted to a meeting between US President Donald Trump and China's President Xi Jinping during a Group of 20 summit in Japan next week, with hopes that they can put negotiations back on track to de-escalate a trade war.

Investors have pinned hopes on some sort of compromise emerging when U.

S. President Donald Trump meets China's President Xi Jinping on the sidelines of the G20 summit in Japan on June 28-29.

China said on Thursday it hoped Washington would bring a problem-solving attitude to the talks. Trump said that he would decide whether to carry out his threat to hit Beijing with tariffs on at least $300 billion in Chinese goods after the meeting.

Start-up shares surged after China's securities regulator on Thursday issued draft rules that would scrap profitability requirements in merger and acquisition deals involving listed companies. The watchdog also committed to easing funding channels for listed firms to improve their cash flow, and encourage companies in the high-tech sector and new strategic industries to restructure.

CURRENCY NEWS: China yuan was strengthened against greenback on Friday, as the central bank kept its stronger guidance rate in 5-1/2 weeks. Prior to the market opening, the People's Bank of China (PBOC) set the midpoint rate at 6.8472 per dollar, 333 bps or 0.59% firmer than the previous fix of 6.8805.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, June 21 2019. 14:21 IST