Headline indices of the Mainland China equity market closed at fresh nine-month high on Thursday, 07 March 2019, registering fifth straight sessions of gain, after Beijing lawmakers outlined new measures that were seen as a concession in Donald Trump's trade war. Sentiment was also helped by Chinese Premier Li Keqiang's announcement on Tuesday of a GDP growth target of 6 to 6.5% this year, a fresh bout of infrastructure spending and tax cuts totalling 1.3 trillion yuan ($200 billion). At closing bell, the benchmark Shanghai Composite Index added 0.14%, or 4.32 points, to 3,106.42. The Shenzhen Composite Index, which tracks stocks on China's second exchange, rose 0.49%, or 8.12 points, to 1,668.53. The blue-chip CSI300 index fell 1.02%, or 39.24 points, to 3,808.85.
In a bid to relieve trade tensions with the US, Chinese officials pledged to bar government authorities from demanding foreign companies give up their technology secrets in exchange for access to Chinese markets, which will encourage foreign investment, according to the reports, citing comments from Ning Jizhe, vice-chairman of the Cabinet's economic planning agency. It will "provide a more encompassing and beneficial legal guarantee," the lawmaker added.
CURRENCY NEWS: China's yuan was up against the U.S. dollar on Thursday. Prior to market opening on Thursday, the PBOC set the daily midpoint rate at 6.7110 per dollar, 57 pips or 0.08 percent weaker than the previous fix 6.7053. In the spot market, onshore yuan opened at 6.7120 per dollar and was changing hands at 6.7103 at midday, 22 pips firmer than the previous late session close and 0.01 percent stronger than the midpoint. The onshore spot yuan hit a low of 6.7188 on Wednesday, the weakest level since Feb.22, reflecting broad dollar strength and fresh worries over tensions on the Korean Peninsula following reports that North Korea is rebuilding part of a test rocket site.
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