You are here: Home » News-CM » International » Market Report
Business Standard

China Socks extend losses on policy tightening woes

Capital Market 

The Mainland China share market finished session lower on Tuesday, 23 February 2021, as worries over policy tightening continued to weigh on sectors with lofty valuations.

At closing bell, the benchmark Shanghai Composite Index declined 0.17%, or 6.05 points, to 3,636.36. The Shenzhen Composite Index, which tracks stocks on China's second exchange, dropped 0.85%, or 20.65 points, to 2,396.01. The blue-chip CSI300 index fell 0.32%, or 17.66 points, to 5,579.67.

The trend of China's policy tightening is quite evident and definite, though the PBOC would refrain from sudden and fast tightening with an aim to provide stability for the market.

China's central bank said it would prioritise policy stability and avoid making sudden shifts, while providing the support needed for a continued economic recovery in 2021.

The People's Bank of China mopped up a net 260 billion yuan (US$40.2 billion) of liquidity from the financial system on last Thursday, stoking concerns that policymakers may have started dialling back their accommodative stance after getting the pandemic under control. The central bank has also lowered lending quota in a move seen as reining in asset speculation.

CURRENCY NEWS: China's yuan firmed up against the dollar after stronger mid-point fixing by the central bank. Before the market open, the People's Bank of China (PBOC) set the yuan's daily midpoint CNY=PBOC at 6.4516 per dollar, firmer than the previous 6.4563. Spot yuan CNY=CFXS opened at 6.4581 per dollar and was changing hands at 6.4584 around midday, 62 pips stronger than Monday's late session close.

Powered by Capital Market - Live News

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

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, February 23 2021. 17:11 IST