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China Stocks end mixed

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Capital Market
Last Updated : Jun 21 2021 | 8:51 PM IST
The Mainland China share market finished session marginal higher on Monday, 21 June 2021, after the People Bank of China said it will not make any sudden policy shifts and kept its benchmark lending rate unchanged for the 14th straight month at its June fixing. However, market gains were limited as the U.S. Federal Reserve's signalled a sooner-than-expected end to its ultra-easy monetary policy.

At closing bell, the benchmark Shanghai Composite Index edged up 0.12%, or 4.09 points, to 3,529.18. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 0.74%, or 17.59 points, to 2,396.20. The blue-chip CSI300 index fell 0.24%, or 12.08 points, to 5,090.39.

The best performing sectors in the Shanghai Stock Exchange were Air Freight (up 10%), Farm Machinery (up 7.9%), New Energy Power (up 6.5%), Paint (up 5.3%), and Pharmaceutical & Biotechnology Services (up 5.2%), while the worst performing sectors were Cement (down 3.4%), Jewellery & Luxury Goods (down 2.8%), Airlines (down 2.2%), Public Transportation (down 2.2%), and Soft Drinks (down 2.1%).

The best performing sectors in the Shenzhen Stock Exchange were Hydropower (up 7%), Airlines (up 5.9%), Shipbuilding (up 5.3%), Internet Retail (up 5.1%), and Oil & Gas Equipment & Services (up 5%), while the worst performing sectors were Education Services (down 5.4%), Livestock Products (down 3.7%), Glass (down 3.1%), Oil & Gas Refining & Marketing (down 3%), and Oil & Gas Refining & Marketing (down 2.3%).

The People's Bank of China has said it will not make any sudden policy shifts, and on Monday the benchmark lending rate for corporate and household loans was left unchanged for the 14th straight month at its June fixing. The People Bank of China on Monday announced that the one-year Loan Prime Rate (LPR) was kept unchanged at 3.85% while the five-year LPR was also held steady at 4.65%.

Riskier assets were also broadly weaker after the US Fed official James Bullard said on Friday that the U.S. central bank might raise interest rates sooner than previously expected, spooking investors.

ECONOMIC NEWS: China kept its benchmark lending rates unchanged on Monday. The one-year loan prime rate was maintained at 3.85% and the five-year loan prime rate was retained at 4.65%. The one-year and five-year loan prime rates were last lowered in April 2020. The one-year loan prime rate was cut by 20 basis points and five-year rate by 10 basis points in April 2020. CURRENCY NEWS: China yuan declined against the dollar on Monday after weaker mid-point fixing by central bank. Prior to the market opening, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.4546 per dollar, 0.29% weaker than the previous fix of 6.4361. In the spot market, onshore yuan CNY=CFXS was changing hands at 6.4671, weaker by 0.21% than the previous late session close of 6.4537.

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First Published: Jun 21 2021 | 4:30 PM IST

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