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China Stocks extend gain on sustained policy support hopes

The Mainland China share market finished higher for second straight session on Monday, 17 May 2021, as slew of domestic economic data released today showed that economic activity moderated in April and signifying sustained government support and tame fears over tightening liquidity. At closing bell, the benchmark Shanghai Composite Index was up 0.78%, or 27.24 points, to 3,517.62. The Shenzhen Composite Index, which tracks stocks on China s second exchange, added 1.15%, or 26.46 points, to 2,320.33. The blue-chip CSI300 index climbed up 1.46%, or 74.39 points, to 5,184.98. All sub-gauges except the measure of financial shares gained on the index, with materials and consumer discretionary firms leading. The strength of consumer stocks came as China is ramping up vaccination following the detection of its first new Covid-19 case cluster in months.

China Stocks gain on strong GDP data

The Mainland China share market finished session higher on Friday, 16 April 2021, as expectations of a domestic economic rebound cemented after the National Bureau of Statistics released stronger than expected economic data. At closing bell, the benchmark Shanghai Composite Index advanced 0.81%, or 27.63 points, to 3,426.62. The Shenzhen Composite Index, which tracks stocks on China s second exchange, added 0.62%, or 13.67 points, to 2,220.22. The blue-chip CSI300 index rose 0.35%, or 17.21 points, to 4,966.18. China s economic recovery quickened sharply in the first quarter ended March 2021 from a coronavirus-induced slump earlier last year, propelled by stronger demand at home and abroad and continued government support for smaller firms. China s gross domestic product expanded 18.3% year-on-year in the first quarter of 2021, up sharply from the 6.5% growth in the fourth quarter of 2020, the National Bureau of Statistics said.

China Socks tumble 1%

The Mainland China share market finished session lower on Monday, 15 March 2021, as risk aversion selloff triggered on policy tightening fears after the latest industrial production to retail sales data beat economists forecasts and as neutral stance by the People s Bank of China. At closing bell, the benchmark Shanghai Composite Index declined 0.96%, or 33.13 points, to 3,419.95. The Shenzhen Composite Index, which tracks stocks on China s second exchange, dropped 2.13%, or 47.32 points, to 2,172.94. The blue-chip CSI300 index fell 2.15%, or 110.84 points, to 5,035.54. Investors refrained from sectors with high valuations and shift towards cyclical players that benefit from an economic recovery. China s industrial output growth quickened in January-February, beating expectations, as the vast manufacturing sector started 2021 on a firm footing.

China Socks extend losses on policy tightening woes

The Mainland China share market finished session lower on Tuesday, 23 February 2021, as worries over policy tightening continued to weigh on sectors with lofty valuations. At closing bell, the benchmark Shanghai Composite Index declined 0.17%, or 6.05 points, to 3,636.36. The Shenzhen Composite Index, which tracks stocks on China s second exchange, dropped 0.85%, or 20.65 points, to 2,396.01. The blue-chip CSI300 index fell 0.32%, or 17.66 points, to 5,579.67. The trend of China s policy tightening is quite evident and definite, though the PBOC would refrain from sudden and fast tightening with an aim to provide stability for the market. China s central bank said it would prioritise policy stability and avoid making sudden shifts, while providing the support needed for a continued economic recovery in 2021.

China Market tumbles on capital outflow concerns

The Mainland China share market finished session steep lower on Monday, 22 February 2021, as concerns grew of a gradual tightening in lending conditions after one-year loan prime rate (LPR) in China was left unchanged at 3.85% and China s potential plans to allow more capital outflows. At closing bell, the benchmark Shanghai Composite Index declined 1.45%, or 53.72 points, to 3,642.45. The Shenzhen Composite Index, which tracks stocks on China s second exchange, dropped 2.11%, or 51.99 points, to 2,416.67. The blue-chip CSI300 index fell 3.14%, or 181.51 points, to 5,597.33. The People s Bank of China (PBOC) on Saturday kept on hold their benchmark loan prime rate, which is set by China s largest commercial lenders and uses an official central bank interest rate as its floor. China kept the one-year loan prime rate (LPR) unchanged at 3.85%. The rate has not moved since it dropped to 3.85% in April last year, when cities nationwide went into lockdown in order to stamp out coronavir

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