China: Market recovers 0.6%

Mainland China share market finished session slightly higher on Wednesday, 15 March 2023, as a slew of data signaled signs of improvement since Beijing dropped its stringent zero-COVID strategy.

Official data on Wednesday showed that China's retail sales in the first two months of 2023 jumped 3.5% year-on-year, reversing a 1.8% annual fall seen in December, but factory activity expanded slightly slower than expected, rising 2.4% for the same period.

At close of trade, the benchmark Shanghai Composite Index was up 0.55%, or 187 points, to 3,263.32. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 0.26%, or 5.33 points, to 2,081.26. The blue-chip CSI300 index edged up 0.06%, or 2.20 points, to 3,986.90.

 

ECONOMIC NEWS: China's industrial production and retail sales expanded in January to February period, data from the National Bureau of Statistics showed Wednesday. Industrial output grew 2.4% on a yearly basis in January to February period, faster than the 1.3% increase posted in December. Retail sales advanced 3.5% from the last year, in contrast to the 1.8% decline in December. In the first two months of the year, fixed asset investment increased 5.5% annually.

CURRENCY NEWS: China's yuan depreciated against the dollar on Wednesday, despite stronger mid-point fixing by China's central bank. Prior to market opening, the People's Bank of China set the midpoint rate CNY=PBOC at 6.8680 per dollar, 269 pips or 0.4% firmer than the previous fix of 6.8949. In the spot market, the yuan CNY=CFXS opened at 6.8820 per dollar and was changing hands at 6.8843 at midday, 48 pips softer than the previous late session close.

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