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China Market surges on support signals

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Last Updated : Feb 06 2024 | 5:16 PM IST
Mainland China shares market finished session sharply higher on Tuesday, 06 February 2024, snapping six days losing streak, after China's sovereign fund pledged to support the stock market and the securities regulator vowed to crack down on malicious short-selling. Market gains led by shares in healthcare, artificial intelligence, and new energy companies.

Investor sentiment quickly lifted after Central Huijin Investment said it would further increase investments in exchange-trade funds (ETFs) to safeguard stable capital market operations. Also helping sentiment, China's securities regulator said it would tighten scrutiny of margin financing, malicious short selling and seek to ward off risks involving pledged shares.

At close of trade, the benchmark Shanghai Composite index spurted 3.23%, or 87.30 points, to 2,789.49. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 5.14%, or 73.68 points, to 1,506.79. The blue-chip CSI300 index surged 3.48%, or 111.27 points, to 3,311.69.

CURRENCY NEWS: China's yuan strengthened against the dollar on Tuesday, despite softer mid-point fixing by the central bank. Prior to the market's opening, the People's Bank of China set the midpoint rate at 7.1082 per dollar, 12 pips weaker than the previous fix of 7.1070. In the spot market, the onshore yuan CNY=CFXS yuan was changing hands at 7.1978 at midday, 10 pips firmer than the previous late session close.

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First Published: Feb 06 2024 | 3:00 PM IST

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