China Market ends steady ahead of trade talks

The Mainland China equity market closed marginally higher on Monday, 24 June 2019, as investors kept a cautious stance after reports that China's President Xi Jinping will attend the G-20 summit in Japan this week where he has been expected to talk on the sidelines U.S. President Donald Trump. At closing bell, the benchmark Shanghai Composite Index rose 0.21%, or 6.17 points, to 3,008.15. The Shenzhen Composite Index, which tracks stocks on China's second exchange, fell 0.09%, or 1.35 points, to 1,576.09. The blue-chip CSI300 index inclined 0.19%, or 7.33 point, to 3,841.27.

Market participants were nervously awaiting outcome of the expected meeting between Presidents Donald Trump and Xi Jinping later this week for any signs of de-escalation in a trade war that is damaging the global economy and souring business confidence. The leaders will meet on the sidelines of the G20 summit in Japan.

 

China and the United States should be willing to make compromises in trade talks and not insist only on what each side wants, Vice Commerce Minister Wang Shouwen said on Monday.

US Vice President Mike Pence on Friday decided to call off a planned China speech, which also increased optimism ahead of trade talks. Pence had upset China with a fierce speech in October in which he laid out a litany of complaints ranging from state surveillance to human-rights abuses.

Shares of banking and financials closed higher, with Industrial and Commercial Bank of China (601398 CH) up 0.51%, at 5.88 yuan; Agricultural Bank of China (601288 CH) closed up 0.55% at 3.66 yuan; and China Merchant Bank (600036 CH) was up 0.72% at 37.96 yuan.

Shares of distilleries were higher. Kweichow Moutai (600519 CH), the distiller of the Chinese white wine, closed up 1.11% at 987 yuan. Wuliangye Yibin (000858 CH) rose 1.84%, to 115.096 yuan.

CURRENCY NEWS: China yuan eased against greenback on Monday. Prior to the market opening, the People's Bank of China (PBOC) set the midpoint rate at 6.8503 per dollar, 0.05% softer than the previous fix of 6.8472. In the spot market, onshore spot yuan opened at 6.8698 per dollar and was changing hands at 6.8760 at midday, 85 pips weaker than the previous late session close.

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