China: Stocks rebound on Covid restriction easing hopes

Mainland China share market finished session sharply higher on Friday, 04 November 2022, on growing expectation that authorities might relax some of the country's strict COVID-19 prevention measures.

China has maintained its zero-COVID strategy this year, hurting the outlook of the world's second-largest economy.

At close of trade, the benchmark Shanghai Composite Index surged 2.43%, or 73 points, to 3,070.80. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 2.68%, or 52.78 points, to 2,020.16. The blue-chip CSI300 index increased 3.27%, or 119.27 points, to 3,767.17.

CURRENCY NEWS: China's yuan appreciated against the dollar despite weaker official guidance by the People's Bank of China. Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate at 7.2555 per dollar, 83 pips weaker than the previous fix of 7.2472, and the weakest since Jan. 22, 2008. In the spot market, the onshore yuan opened at 7.3140 per dollar and touched a one-week high of 7.2340 before easing a bit to 7.2511 as of 0650 GMT.

 

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