At close of trade, the benchmark Shanghai Composite Index fell 0.13%, or 3.89 points, to 3,083.40. The Shenzhen Composite Index, which tracks stocks on China's second exchange, dropped 0.26%, or 5.15 points, to 2,012.81. The blue-chip CSI300 index increased 0.15%, or 5.58 points, to 3,794.02.
Beijing and several other major cities in China reported record COVID-19 infections on Monday, putting authorities under more pressure to quell outbreaks quickly while also trying to reduce the impact on people's lives and on economic activity.
The National Health Commission reported 16,072 new locally transmitted cases on Monday, up from 14,761 on Sunday and the highest in the country since April 25.
Beijing, Chongqing, Guangzhou and Zhengzhou all recorded their worst day so far, though in the case of the capital the tally was few hundred cases, while the other cities were counting in thousands.
Despite the loosening of curbs, many experts say the measures are incremental, with some predicting that China is unlikely to begin reopening until after the March session of parliament, at the earliest.
Chinese property stocks soared as the market cheered an extensive package outlined by Chinese regulators to shore up financing in the embattled real estate sector. The People's Bank of China and the China Banking and Insurance Regulatory Commission outlined 16 measures to support the ailing property sector, including urging commercial banks to extend loan maturities and encouraging financial institutions to facilitate mergers. The plan comes as the cash-strapped sector has struggled with defaults and stalled projects, hitting market confidence and weighing on the world's second-largest economy.
CURRENCY NEWS: China's yuan appreciated against the dollar on Monday, inline with firmer midpoint fixing by China's central bank, official moves to help rescue the embattled property sector and the government's decision to ease some of the country's strict COVID-19 prevention controls. Prior to market opening on Friday, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at 7.0899 per dollar, 1,008 pips or 1.42% firmer than the previous fix of 7.1907. In the spot market, the onshore spot yuan CNY=CFXS opened at 7.0850 per dollar and jumped to a high of 7.0322, the strongest since Sept. 21, before changing hands at 7.0390 by midday, 545 pips firmer than the previous late session close.
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