China Stocks edge up as IMF GDP upgrades

Mainland China share market finished session on a firm note on Wednesday, 29 May 2024, as risk sentiments underpinned after the property relaxation steps announced by a top-tier cities and the International Monetary Fund upgraded its economic growth forecasts for the Asian giant.

The cities of Guangzhou and Shenzhen reduced downpayment requirements on home purchases, following a similar move by Shanghai. The cities also allowed cheaper home loans to boost the real estate market.

China's economy is set to grow 5% this year, after a "strong" first quarter, the IMF said on Wednesday, raising its earlier forecast of 4.6% expansion.

 

At close of trade, the benchmark Shanghai Composite index edged up 0.05%, or 1.45 points, to 3,111.02. The Shenzhen Composite which tracks stocks on China's second exchange, added 0.3%, or 5.22 points, to 1,734.14. The blue-chip CSI300 index inclined by 0.12%, or 4.35 points, to 3,613.52.

CURRENCY NEWS: China's yuan edged down against the dollar on Wednesday, as softer mid-point rate fixing by the central bank. Prior to the market's opening, the People's Bank of China set the midpoint rate at 7.1106 per U.S. dollar, 0.01% weaker than the previous fix of 7.1101. In the spot market, the onshore yuan opened at 7.2425 per dollar and was changing hands at 7.2483 at midday, 0.06% weaker from the previous late session close.

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