However, market losses capped after data showed activity in China's services sector expanded at a faster pace in December. The latest survey from Caixin revealed that services PMI score of 53.1, up from 52.1 in November.
At close of trade, the benchmark Shanghai Composite Index declined 0.25%, or 9.10 points, to 3,586.08. The Shenzhen Composite Index, which tracks stocks on China's second exchange, fell 0.1%, or 2.37 points, to 2,481.33. The blue-chip CSI300 index dropped 1.03%, or 49.89 points, to 4,818.23.
ECONOMIC NEWS: China Caixin Services PMI Improves in December- China Caixin Services PMI increased to 53.1 in December 2021 from 52.1 in the prior month, marking the fourth straight month of expansion. Output has now increased in each of the past four months, with the latest rise solid overall. Companies that registered higher activity levels often mentioned that improved market conditions, new product releases and higher sales had supported growth. New orders expanded at a faster pace despite fears over COVID-19 flare-ups, while export orders were stable. At the same time, employment rose for the fourth month in a row and was the fastest increase since May. Meanwhile, output prices inflation slowed to a four-month low. Looking forward, business sentiment weakened to a 15-month low, which was remarkably lower than the long-term average, due to worries uncertainty over the pandemic.
CURRENCY NEWS: China's yuan was weaker against the U.S. dollar on Thursday despite firmer mid-point fixing by the central bank. Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.3728 per dollar, 51 pips firmer than the previous fix 6.3779. In the spot market, the onshore yuan CNY=CFXS was changing hands at 6.3742 around late afternoon, 95 pips weaker than the previous late session close.
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