China Stocks end softer

The Mainland China share market closed down after fluctuating between positive and negative territory on Tuesday, 28 April 2020, as positivity from news of fresh regulatory reform overshadowed by continued drop in crude oil prices and on caution ahead of release of big banks corporate earnings. At closing bell, the benchmark Shanghai Composite Index dropped 0.19%, or 5.47 points, to 2,810.02. The Shenzhen Composite Index, which tracks stocks on China's second exchange, fell 0.32%, or 5.48 points, to 1,732.56. The blue-chip CSI300 index rose 0.69%, or 26.38 points, to 3,849.15.

China's banking regulator has asked commercial banks to halt new sales of a wide range of wealth management products that might lead to unlimited losses for investors, a week after heavy losses were recorded in a crude oil futures trading product sold by the country's fourth-largest lender. Investors worry a broad tightening on such products could hurt bank profits.

 

China kicked off a reform this week to fast-track initial public offerings (IPOs) on Shenzhen's start-up board ChiNext, as Beijing accelerates capital market restructuring to reinvigorate an economy ravaged by coronavirus.

CURRENCY NEWS: China's yuan was up against the dollar on Tuesday, inline with firmer mid-point fixing by central bank and optimism the economy was on a stronger footing. Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at 7.071 per dollar, weaker than the previous fix of 7.0703, but stronger than market expectations. In the spot market, onshore yuan CNY=CFXS was changing hands at 7.0860 late afternoon, 8 bps firmer than the previous late session close.

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