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China Stocks rebound as easing COVID quarantine rules, stimulus hopes

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Capital Market
Last Updated : Nov 15 2022 | 3:50 PM IST
Mainland China share market finished session sharply higher on Tuesday, 15 November 2022, as market participants risk appetite underpinned by Beijing easing some of its COVID-19 rules and offer of more financial support to the troubled property market sparking hopes of an economic recovery.

Investors also cheered the easing of tensions in strained U.S.-China relations after a meeting of the heads of the world's top two economies on the sidelines of the G20 Summit.

At close of trade, the benchmark Shanghai Composite Index surged by 1.64%, or 50.68 points, to 3,134.08. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 2.05%, or 41.29 points, to 2,054.09. The blue-chip CSI300 index increased 1.9%, or 71.95 points, to 3,865.97.

ECONOMIC NEWS: Industrial production, a gauge of activity in the manufacturing, mining, and utilities sectors, rose by 5% last month, year on year, the National Bureau of Statistics (NBS) confirmed on Tuesday.But retail sales fell by 0.5% in October, down from 2.5% growth in September.

CURRENCY NEWS: China's yuan appreciated against the dollar on Tuesday as firmer midpoint fixing by China's central bank. Prior to market opening on Friday, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at 7.0421 per dollar prior to market open, firmer than the previous fix 7.0899. In the spot market, the onshore spot yuan CNY=CFXS opened at 7.0400 per dollar and was changing hands at 7.0506 at midday, 204 pips firmer than the previous late session close and 0.12% softer from the midpoint.

China's central bank partially rolled over maturing medium-term policy loans while keeping the interest rates unchanged for a third straight month on Tuesday. The People's Bank of China (PBOC) said it was keeping the rate on 850 billion yuan worth of one-year medium-term lending facility (MLF) loans to some financial institutions at 2.75%, unchanged compared with the previous operation. With 1 trillion yuan worth of MLF loans set to expire on the same day, the operation resulted in a net 150 billion yuan medium-term cash withdrawal through the instrument.

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First Published: Nov 15 2022 | 3:37 PM IST

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