At close of trade, the benchmark Shanghai Composite Index fell 0.09%, or 2.72 points, to 3,176.33. The Shenzhen Composite Index, which tracks stocks on China's second exchange, sank 0.56%, or 11.50 points, to 2,050.37. The blue-chip CSI300 index was down 0.2%, or 7.76 points, to 3,945.68.
Chinese authorities started to unwind strict zero-COVID policies last week, but optimism about a possible reopening of the economy is giving away to fears of massive outbreaks and disruptions following Beijing's abrupt policy pivot.
China reported 7,679 new COVID-19 infections on Dec. 12, far lower than the more than 30,000 reported per day in late November. The drop has come amid the government doing less testing on its population as part of a broad relaxation of its zero-COVID policy.
ECONOMIC NEWS: New yuan-denominated loans totaled 1.21 trillion yuan ($174 billion) in November, up from 615.2 billion yuan in October, according to the People's Bank of China (PBOC). Newly added social financing, a measurement of funds that individuals and non-financial firms receive from the financial system, came in at 1.99 trillion yuan, much higher than 907.9 billion yuan in October. M2, a broad measure of money supply that covers cash in circulation and all deposits, increased 12.4% year on year to 264.7 trillion yuan at the end of last month.
CURRENCY NEWS: The Chinese currency edged up against the U.S. dollar on Monday, despite softer mid-point fixing by central bank. Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate at 6.9746 per U.S. dollar, weaker than the previous fix of 6.9565. The spot yuan opened at 6.9856 per dollar and was changing hands at 6.9770 at midday, 9 pips strong than the previous late session close, and 0.03% away from the midpoint.
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