China Market tumbles 1.91%

Mainland China share market finished session steep lower on Wednesday, 28 February 2024, as investors opted to lock profit after a recent policy support-led rally, with shares in semiconductors and automobiles leading losses. Adding to the selloff pressure was reports that liquidation petition had been filed against Country Garden for non-payment of a loan worth $205 million.

Meanwhile, all eyes are on U.S. inflation data and initial jobless claims on Thursday for clues on the likely path of U.S. rates this year. Market participants are also awaiting authorities' next policy move as the National People's Congress begins its annual meeting on March 5. Key topics to monitor include discussions about the governments "new model" for the property sector, local government financing and fiscal reforms, as well as other demand-side stimulus such as support to consumption.

At close of trade, the benchmark Shanghai Composite index stumbled 1.91%, or 57.63 points, to 2,957.85. The Shenzhen Composite Index, which tracks stocks on China's second exchange, dropped 3.79%, or 65.09 points, to 1,651.49. The blue-chip CSI300 index retreated 1.27%, or 44.53 points, to 3,450.26.

CURRENCY NEWS: China's yuan weakened against the dollar on Wednesday. Prior to the market's opening, the People's Bank of China set the midpoint rate at 7.1075 per U.S. dollar, weaker than the previous fix 7.1057. In the spot market, the onshore yuan CNY=CFXS yuan was changing hands at 7.1990 at midday, 9 pips weaker than the previous late session close.

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