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China Market extends gains on NYSE scraps plan to delist China telecom giants

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Capital Market
Last Updated : Jan 05 2021 | 5:31 PM IST
The Mainland China share market finished session higher on Tuesday, 05 January 2021, as risk assets buying propelled after reports that the New York Stock Exchange scraps its delisting plan of Chinese telecom companies.

At closing bell, the benchmark Shanghai Composite Index advanced 0.73%, or 25.72 points, to 3,528.68. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 1.5%, or 35.80 points, to 2,422.34. The blue-chip CSI300 index rose 1.91%, or 100.78 points, to 5,368.50.

The New York Stock Exchange reversed its decision to delist their American depositary receipts after announcing on the eve of New Year a decision to remove the ADRs issued by the Chinese telecom companies - China Telecom, China Mobile and China Unicom from as soon this week to comply with President Donald Trump's executive order.

CURRENCY NEWS: China's yuan was virtually flat against the dollar despite the central bank set a stronger midpoint. Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.476 per dollar, 1% stronger than the previous fix of 6.5408. It was the biggest one-day lift in the yuan midpoint since China abandoned a decade-old peg against the dollar in 2005, and the strongest official guidance in more than 30 months. Spurred on by the fixing, spot yuan CNY=CFXS opened at 6.4601 per dollar and jumped to 6.4292 in the morning session, its strongest since June 15, 2018. Its offshore counterpart surged more than 0.6% to break through the 6.42 level and touch 6.4127 per dollar, also its firmest since mid-June 2018.

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First Published: Jan 05 2021 | 5:13 PM IST

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