China Market ends down

Mainland China share market finished session steep lower on Monday, 10 October 2022, dragged down by Chinese chipmakers after Washington announced new export controls that will limit Beijing's ability to buy and manufacture high-end chips used in military equipment. Meanwhile, signs of fresh COVID outbreaks in the country and weak service sector data released over the weekend also weighed on markets.

At close of trade, the benchmark Shanghai Composite Index dropped 1.66%, or 50.24 points, to 2,974.15. The Shenzhen Composite Index, which tracks stocks on China's second exchange, fell 2.17%, or 41.49 points, to 1,870.50. The blue-chip CSI300 index decreased 2.21%, or 83.95 points, to 3,720.94.

 

ECONOMIC NEWS: The Caixin services purchasing managers' index came in at 49.3 in September, according to a report published Saturday, a steep drop from 55 in August. The 50-point mark separates growth from contraction. PMI readings compare activity from month to month. The nation's Covid curbs caused services activity in China to contract in September for the first time since May, the report said.

CURRENCY NEWS: China's yuan firmed up against the dollar on Monday, inline with firmer mid-point fixing by central bank. Beijing's recent efforts to stabilise the currency market have also supported the yuan. Onshore yuan CNY=CFXS was changing hands at 7.1140 at midday, a tad stronger than the previous late session close after the People's Bank of China set a firmer midpoint rate CNY=PBOC, at 7.0992 per dollar.

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