China Market extends gains on policy easing


The Mainland China share market finished higher for second straight session on Wednesday, 08 December 2021, as investors sentiments lifted up on Beijing’s recent easing signals. However, market gains capped amid concerns about property developers debt crisis woes with Kaisa and Evergrande becoming the most visible faces of the debt crunch.

At close of trade, the benchmark Shanghai Composite Index surged 1.18%, or 42.48 points, to 3,637.57. The Shenzhen Composite Index, which tracks stocks on China’s second exchange, added 1.77%, or 43.80 points, to 2,521.29. The blue-chip CSI300 index was up 1.5%, or 73.83 points, to 4,995.93.

The People Bank of China cut the reserve requirement ratio (RRR) for major commercial banks by 0.5 percentage points on Monday, releasing 1.2 trillion yuan (US$188 billion) worth of long-term liquidity into the interbank system on December 15 with an aim of supporting the Chinese economy in the face of growing headwinds.

Consumer staples rose, with liquor makers leading the jump.

Kweichow Moutai surged 4.5% to 2,043 yuan.

Real estate developers stocks retreated after China Evergrande Group missed a debt payment deadline, putting the developer at risk of becoming China’s biggest defaulter.

CURRENCY NEWS: China’s yuan strengthened against the U. S. dollar on Wednesday after the central bank set its daily fixing at a more than six-month high. Prior to market opening, the People’s Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.3677 per dollar, its strongest since June 1, and 0.1% firmer than the previous fix of 6.3738. In the spot market, the onshore yuan CNY=CFXS was changing hands at 6.54 around late afternoon on Wednesday, 0.19% firmer than the previous late session close.

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

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