China Market closes mixed on economic recovery concerns

The Mainland China share market finished session in mixed territory on Tuesday, 28 September 2021, as downward GDP growth forecast revision by the Goldman Sachs and Nomura and lingering worries about the potential impact of a widening power shortage offset positivity from the People's Bank of China pledge to ensure a healthy property market amid the China Evergrande Group crisis.

Goldman Sachs lowered its 2021 growth forecast for China to 7.8% from 8.2%, as energy shortages and deep industrial output cuts add "significant downside pressures".

At closing bell, the benchmark Shanghai Composite Index advanced 0.54%, or 19.39 points, to 3,602.22. The Shenzhen Composite Index, which tracks stocks on China's second exchange, fell 0.18%, or 4.36 points, to 2,402.20. The blue-chip CSI300 index added 0.13%, or 6.46 points, to 4,883.83.

 

ECONOMIC NEWS: China Industrial Profits Up 10.1% On Year In August- China's industrial profits continued to grow at a slower pace as higher input prices as well as shortage of materials lifted production cost, the National Bureau of Statistics reportedly said Tuesday. Industrial profits increased 10.1% year-on-year in August, following an annual growth of 16.4% in July. During January to August period, industrial profits advanced 49.5% from the same period last year.

CURRENCY NEWS: China's yuan was up against the U.S. dollar on Tuesday, after firmer mid-point fixing by central bank. Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.4608 per dollar, 87 pips or 0.13% firmer than the previous fix of 6.4695. In the spot market, the yuan CNY=CFXS was last quoted at 6.4556 at midday, 14 pips firmer than the previous late session close.

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