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China Stocks end softer on softer economic data

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Capital Market
Last Updated : Dec 15 2022 | 5:04 PM IST
Mainland China share market finished session slightly lower on Thursday, 15 December 2022, as rising COVID-19 infections and disappointing economic data weighed on the mood.

At close of trade, the benchmark Shanghai Composite Index declined 0.25%, or 7.88 points, to 3,168.65. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 0.31%, or 6.31 points, to 2,054.91. The blue-chip CSI300 index was down 0.07%, or 2.90 points, to 3,951.99.

China's economy lost more steam in November as factory output slowed and retail sales extended declines, hobbled by surging COVID-19 cases and widespread virus curbs.

China's industrial output rose 2.2% in November from a year earlier, slowing significantly from the 5% growth seen in October, the National Bureau of Statistics (NBS) data showed on Thursday.

The bureau also said that retail sales fell 5.9% amid broad-based weakness in the services sector, following a 0.5% dip in October. Fixed asset investment expanded 5.3% in the first 11 months of the year, versus slower from growth of 5.8% during January-October. The November jobless rate crept up to 5.6% from 5.5% in October, while the house price index was steady at an annual -1.6%.

China's central bank on Thursday added liquidity to the banking system via operations of medium-term lending facility (MLF) and reverse repos. The People's Bank of China (PBOC) injected 650 billion yuan ($93.7 billion) into the market through one-year MLF with an interest rate of 2.75%. With 500-billion-yuan MLF maturing this month, PBOC's operation resulted in injecting 150 billion yuan of medium-term liquidity on a net basis from the banking system on the day. The central bank also conducted seven-day reverse repos worth 2 billion yuan at an interest rate of 2%. The move aims to maintain reasonable and sufficient liquidity in the banking system.

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First Published: Dec 15 2022 | 4:49 PM IST

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