China Market extends gain

The Mainland China share market finished session higher on Wednesday, 25 August 2021, as bargain buying continued, thanks to liquidity infusion by People's Bank of China to counter challenges to growth and expectations that policymakers will announce more easing measures to boost economic activity.

At closing bell, the benchmark Shanghai Composite Index surged 0.74%, or 25.91 points, to 3,540.38. The Shenzhen Composite Index, which tracks stocks on China's second exchange, advanced 0.46%, or 11.24 points, to 2,475.09. The blue-chip CSI300 index rose by 0.2%, or 9.77 points, to 4,898.16.

CURRENCY NEWS: China yuan was down against the dollar on Wednesday, despite firmer mid-point fixing by central bank. Prior to the market opening, the People's Bank of China (PBOC) set the midpoint CNY=PBOC at 6.4728 per dollar prior to the market open, 77 pips firmer than the previous fix of 6.4805. In the spot market, the yuan CNY=CFXS opened at 6.4715 per dollar and was changing hands at 6.4777 at around late afternoon, 72 pips weaker than the previous late session close.

The People's Bank of China (PBOC) increased short-term liquidity injections into the financial system through open market operations (OMOs) with its latest action on Wednesday (25 August). China's central bank offered 50 billion yuan ($7.72 billion) through seven-day reverse repos into the banking system.

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