China Market gains after upbeat exports data

The Mainland China share market finished session higher on Tuesday, 07 September 2021, as investors sentiments underpinned after data showed exports in the world's second-largest economy unexpectedly grew at a faster pace last month, due to solid global demand. Also, boosting sentiments was securities regulator statement that China will further open its capital markets to foreign investors, adding that it will pursue pragmatic cross-border cooperation to regulate overseas-listed Chinese companies.

At closing bell, the benchmark Shanghai Composite Index added 1.51%, or 54.73 points, to 3,676.59. The Shenzhen Composite Index, which tracks stocks on China's second exchange, rose 1.11%, or 27.28 points, to 2,490.64. The blue-chip CSI300 index advanced 1.2%, or 59.10 points, to 4,992.83.

 

ECONOMIC NEWS: China Exports Rise At Faster Pace In August- Shipments from the world's biggest exporter in August rose at a faster-than-expected rate of 25.6% from a year earlier, from a 19.3.% gain in July, pointing to some resilience in China's industrial sector. Exports unexpectedly grew at a faster pace in August, as solid global demand offset some of the pressure on the world's second-biggest economy from a resurgence of domestic COVID-19 cases and supply bottlenecks. Imports increased 33.1% year-on-year in August, compared with 28.1% growth in the previous month. China posted a trade surplus of $58.34 billion in August, versus $56.58 billion in July.

CURRENCY NEWS: China's yuan firmed up against the U.S. dollar on Tuesday despite softer mid-point fixing by central bank. Prior to the market opening, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.4533 per dollar, 4 pips weaker than the previous fix of 6.4529. In the spot market, the yuan opened at 6.4553 per dollar and was changing hands at 6.4548 at midday, 32 pips firmer from the previous late session close.

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