China Market ends lower

Mainland China share market finished session slightly lower on Thursday, 09 March 2023, as risk sentiments dampened after China's posted the slowest annual consumer price inflation in a year, fanning doubts about the pace of economic recovery.

At close of trade, the benchmark Shanghai Composite Index was down 0.22%, or 7.15 points, to 3,276.09. The Shenzhen Composite Index, which tracks stocks on China's second exchange, fell 0.07%, or 1.58 points, to 2,113.33. The blue-chip CSI300 index dropped 0.35%, or 14.26 points, to 4,019.85.

The Consumer price index (CPI) for February was 1.0% higher than a year earlier, rising at its slowest since February 2022. The producer price index (PPI) in February fell 1.4% from a year earlier, marking a fifth consecutive month of producer price deflation.

While falling inflation could leave room for the central bank to cut rates, such expectations have fallen by the way side after the moderate target of 5% annual economic growth was set by the government at the opening of the National People's Congress on Sunday.

CURRENCY NEWS: China's yuan weakened against the dollar on Thursday, as weaker mid-point fixing by China's central bank. Prior to market opening, the People's Bank of China set the midpoint rate CNY=PBOC at 6.9666 per dollar, weaker than the previous fix 6.9525. In the spot market, the yuan CNY=CFXS was changing hands at 6.9671 at midday, 106 pips weaker than the previous late session close and 0.01% away from the midpoint.

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