China Market rises 1%

The Mainland China share market finished higher for second session in row on Thursday, 10 August 2021, as bargain buying continued on hopes for a fresh policy supports and central bank steps to maintain reasonably ample liquidity in the banking system.

However, market gains capped amid concerns over coronavirus Delta-variant infections after China saw 143 new infections on Monday of which 108 were local origins. Yangzhou, a city in east China's Jiangsu Province, has beefed up measures to race against time to contain the spread of COVID-19 caused by the highly contagious Delta variant.

At closing bell, the benchmark Shanghai Composite Index rose 1.01%, or 35.30 points, to 3,529.93. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 0.85%, or 20.96 points, to 2,483.79. The blue-chip CSI300 index was up 1.16%, or 67.59 points, to 5,043.15.

 

China's central bank on Tuesday conducted 10 billion yuan (1.54 billion U.S. dollars) of reverse repos to maintain reasonably ample liquidity in the banking system. The interest rate for the seven-day reverse repos was set at 2.2%. With 10 billion yuan of reverse repos maturing on the same day, the move led to zero liquidity injection into the market.

CURRENCY NEWS: China yuan was little changed against the dollar on Tuesday after softer mid-point fixing by central bank. Prior to the market opening, the People's Bank of China (PBOC) set the midpoint rate at 6.4842 per dollar, 2 pips weaker than the previous fix of 6.4840.

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