China Market rises after Yi Gang retains as central bank governor

Mainland China share market finished session higher on Monday, 13 March 2023, as risk sentiments underpinned on monetary policy continuity expectations after reports that China's economic leadership team would retain several familiar faces.

At close of trade, the benchmark Shanghai Composite Index was up 1.2%, or 38.62 points, to 3,268.70. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 0.44%, or 9.25 points, to 2,096.42. The blue-chip CSI300 index advanced 1.05%, or 41.55 points, to 4,008.69.

China reappointed several top economic officials in a leadership reshuffle Sunday, giving investors greater continuity as Beijing overhauls financial regulation and grapples with escalating tensions with the US. People's Bank of China Governor Yi Gang, 65, will remain in his post, as will the finance and commerce ministers. He Lifeng, a close ally of President Xi Jinping, was appointed a vice premier, signaling he could replace Liu He as the nation's top economic official

 

The market likes the continuity and Yi Gang is seen as a reform-minded technocrat and the market gives him credibility for his handling of the monetary policy during the pandemic.

CURRENCY NEWS: China's yuan appreciated against the dollar on Monday, as stronger mid-point fixing by China's central bank. Prior to market opening, the People's Bank of China set the midpoint rate CNY=PBOC at 6.9375 per dollar, 0.4% firmer than the previous fix of 6.9655. In the spot market, the yuan CNY=CFXS was changing hands at 6.8745 at midday, 0.65% firmer than the previous late session close of 6.9195.

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