China Market rebounds on new guidelines

Mainland China share market finished session higher on Monday, 15 April 2024, bucking the regional markets trend, as investors interpreted the new guidelines on the country's capital market as a positive signal for the stock market.

At close of trade, the benchmark Shanghai Composite index was up 1.26%, or 37.91 points, to 3,057.38. The Shenzhen Composite Index, which tracks stocks on China's second exchange, dropped 0.29%, or 5.04 points, to 1,702.68. The blue-chip CSI300 index rebounded 2.11%, or 73.24 points, to 3,549.08.

The sentiment was uplifted after the China's securities regulator issued draft rules on Friday to strengthen the supervision of company listings, delistings and computer-driven programme trading, in a move to improve the stock market and protect investors' interests. The regulator will also set up a "comprehensive" system that will punish those involved in anti-counterfeiting within the capital market and will crack down on illegal shareholding reductions.

 

Earlier in the day, the central bank kept a key policy interest rate steady as widely expected when rolling over maturing medium-term loans, and drained some cash from the banking system through the bond instrument.

CURRENCY NEWS: China's yuan declined to 5-month low against the dollar on Monday. Prior to the market's opening, the People's Bank of China set the midpoint rate at 7.0979 per U.S. dollar, weaker by 0.02% from previous day fixing of 7.0967. In the spot market, the onshore yuan CNY=CFXS yuan was changing hands at 7.2382 at midday, around 0.01% weaker from the previous day late session close of 7.2372.

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