China Market as Biden odds improve

The Mainland China share market finished session higher on Thursday, 05 November 2020, mirroring firm Wall Street overnight cues as U.S. Democrat candidate Joe Biden inched closer to a win in the U.S. presidential election, who is seen as favouring a less confrontational approach than President Donald Trump in Sino-U.S. relations.

At closing bell, the benchmark Shanghai Composite Index advanced 1.3%, or 42.69 points, to 3,320.13. The Shenzhen Composite Index, which tracks stocks on China's second exchange, advanced 1.67%, or 37.74 points, to 2,299.87. The blue-chip CSI300 index added 1.48%, or 71.45 points, to 4,885.11.

New energy shares and Apple suppliers also gained on expectations of easing Sino-U.S. tensions and hopes that a Biden White House would invest more in renewable energy. Wisesoft, a Chinese software maker, sank 2.9% to 16.73 yuan in Shenzhen, reversing much of the 6.4% rally on Wednesday. The firm's name in Chinese is associated with a Trump win. Liquor distiller Wuliangye Yibin gained 2.5% to 259.41 yuan, taking its market cap slightly past 1 trillion yuan (US$150.6 billion) for the first time. The stock was the first one to surpass the trillion-yuan market on the Shenzhen bourse.

 

CURRENCY NEWS: The yuan ended the domestic trading session at a 28-month high on Thursday as growing prospects of a Joe Biden presidency in the United States raised investor expectations of a less problematic trade relationship between the world's two largest economies. Prior to market opening, the People's Bank of China set the midpoint rate CNY=PBOC at 6.6895 per dollar, 124 pips or 0.19% weaker than the previous fix of 6.6771. The onshore spot yuan CNY=CFXS finished domestic trading session at 6.64 per dollar, its strongest such close since July 10, 2018.

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