China Stocks rebound on ABS curb easing hopes

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Capital Market
Last Updated : Nov 17 2021 | 7:50 PM IST
The Mainland China share market rebounded on Wednesday, 17 November 2021, as investor sentiments boosted up on optimism surrounding US-China ties and reports that Beijing plans to let property companies resume issuance of asset-backed securities.

At close of trade, the benchmark Shanghai Composite Index advanced 0.44%, or 15.58 points, to 3,537.37. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 1.1%, or 27.06 points, to 2,477.02. The blue-chip CSI300 index was edge up 0.05%, or 2.43 points, to 4,885.75.

Presidents Joe Biden and Xi Jinping held an hours-long virtual meeting on Tuesday. Although it appeared to yield no immediate outcomes, it gave the two leaders opportunity to nudge their relations away from icy confrontation. Trade disputes failed to appear as the top agenda, but investors still hoped further improvements in bilateral relations and chances of partial tariff removals.

China plans to let property companies resume issuance of asset-backed securities, ending a three-month market freeze as authorities move to insulate higher-rated developers from an industrywide funding crunch.

Investor focus turns to Wednesday's deadline for a Yango Group unit's dollar debt exchange offer. That's after the company warned that without more time it may not be able to repay existing bonds at maturity. China Evergrande Group Chairman Hui Ka Yan injected more than 7 billion yuan ($1.1 billion) in cash to boost the firm's liquidity

CURRENCY NEWS: China's yuan climbed up against the U.S. dollar on Wednesday, despite weaker mid-point fixing, as heavy corporate demand for the local currency outweighed broad greenback strength and as an amicable meeting between U.S. and Chinese leaders broadly supported the investor mood. Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.3935 per dollar, 11 pips weaker than the previous fix of 6.3924. In the spot market, the onshore yuan CNY=CFXS was changing hands at 6.3895 at midday, 22 pips firmer than the previous late session close.

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First Published: Nov 17 2021 | 5:39 PM IST

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