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China Stocks extend losses on Norway fund's snub

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Capital Market
Last Updated : Mar 09 2022 | 8:31 PM IST
The Mainland China share market finished down for sixth straight session on Wednesday, 09 March 2022, as investor sentiment was weighed down by reports that Norway's $1.3 trillion sovereign wealth fund would sell off its stake in China's Li Ning over suspicions of human rights violations in Xinjiang.

Meanwhile, sentiments soured further on concern that surging commodity costs will fan inflation and limit the Chinese central bank's ability to ease policy. Crude oil prices surged after the U.S. President Joe Biden on Tuesday announced a ban on Russian oil and other energy imports, a significant move in piling pressure on President Vladimir Putin to halt his devastating assault on Ukraine.

At close of trade, the benchmark Shanghai Composite Index was down 1.13%, or 37.14 points, to 3,256.39. The Shenzhen Composite Index, which tracks stocks on China's second exchange, dropped 1.1%, or 23.52 points, to 2,116.15. The blue-chip CSI300 index sank 0.92%, or 39.04 points, to 4,226.35.

Market risk sentiments dampened after Norway's $1.3 trillion sovereign fund announced its exclusion of Li Ning Co due to risk that the sportswear maker contributes to serious huan rights violations in Xinjiang. The move stocked worries about a potential retreat of other long-term investors and concerns about their attitude over Chinese and Hong Kong stocks in future.

ECONOMIC NEWS: China Consumer Prices Up 0.9% On Year In February- China overall consumer prices climbed 0.9% on year in February, the National Bureau of Statistics said on Wednesday, unchanged from the January reading. On a monthly basis, inflation jumped 0.6%, up from 0.4% a month earlier.

CURRENCY NEWS: China's yuan appreciated against the U.S. dollar on Wednesday, after firmer mid-point fixing by central bank. Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.3178 per dollar, 0.01% stronger than the previous fix of 6.3185. In the spot market, the yuan CNY=CFXS opened at 6.3159 per dollar and was changing hands at 6.3175 at midday, 20 pips stronger from the previous late session close.

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First Published: Mar 09 2022 | 6:39 PM IST

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