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China Market rises 0.67% after week-long holiday

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Capital Market
Last Updated : Oct 08 2021 | 7:31 PM IST
The Mainland China share market finished higher on the first day of trade on Friday, 08 October 2021, after a five-day trading break due to a Golden Week holiday. The rally in the Mainland market was chiefly due to signs of positive developments in Sino-U.S. relations and data showing that the services activity in China returned to positive levels.

At closing bell, the benchmark Shanghai Composite Index advanced 0.67%, or 24 points, to 3,592.17. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 0.79%, or 18.87 points, to 2,413.92. The blue-chip CSI300 index increased 1.31%, or 63.56 points, to 4,929.94.

China's service sector returned to growth in September as the resurgence in local COVID-19 cases abated and boosted supply and demand in the sector, according to the Caixin/Markit PMI report published on Friday. The Caixin China General Services Purchasing Managers' Index came in at 53.4 last month, up from 46.7 in August, indicating a renewed and strong increase in service activity. A PMI reading above 50 signals expansion in activities, while below 50 points indicates to contraction.

U.S. national security adviser Jake Sullivan and China's top diplomat, Yang Jiechi, had their first face-to-face encounter this week since an unusually public and acrid airing of grievances in Alaska in March. Meanwhile, U.S. President Joe Biden and Chinese President Xi Jinping have agreed in principle to hold a virtual meeting before year's end after high-level talks meant to improve communication between the two big powers.

CURRENCY NEWS: China's yuan was tad lower against the U.S. dollar on Friday, despite firmer mid-point fixing by central bank. Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.4604 per dollar, 250 pips or 0.39% firmer than the previous fix of 6.4854. In the spot market, the yuan CNY=CFXS was stood at 6.4490, 10 pips weaker than the previous late session close last Thursday.

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First Published: Oct 08 2021 | 4:59 PM IST

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