China Stocks down as virus fears persists

Mainland China equity market finished session lower on Wednesday, 11 March 2020, as investors remained worried about the coronavirus epidemic and weighed stimulus packages from governments to ease economic strains caused by the outbreak. At closing bell, the benchmark Shanghai Composite Index dropped 0.94%, or 28.24 points, to 2,968.52. The Shenzhen Composite Index, which tracks stocks on China's second exchange, declined 1.48%, or 27.94 points, to 1,859.40. The blue-chip CSI300 index shed 1.33%, or 54.30 points, to 4,028.43.

The coronavirus outbreak, which originated in China, has cast a shadow over the global economic outlook. The disease has infected at least 113,851 and taken more than 4,000 lives so far, according to the latest figures from the World Health Organization.

 

China reported an uptick in new confirmed cases of coronavirus infections, reversing four straight days of fewer new cases, driven by infected individuals arriving from abroad. However, President Xi's first visit to Wuhan, since the outbreak forced a lockdown of the city, boosted optimism that efforts by authorities to control the virus are working.

China's state planner said on Wednesday it has approved an airport expansion project in the northwestern Qinghai province, with a total investment of 10.51 billion yuan ($1.51 billion). Chinese policymakers have implemented a raft of measures to support an economy jolted by a coronavirus outbreak that is expected to have a devastating impact on first-quarter growth.

CURRENCY NEWS: China's yuan rose against the dollar on Wednesday, despite China central bank fixed softer mid-point rate. The People Bank of China set the yuan's daily midpoint rate CNY=PBOC at 6.9612 per dollar, 0.32% softer than the previous fix of 6.9389. The onshore yuan CNY=CFXS firmed 0.09% to 6.9498 per dollar by midday, while the offshore yuan CNH=D3 traded 0.13% stronger at 6.9541 per dollar.

Chinese banks extended 905.7 billion yuan ($130.24 billion) in new yuan loans in February, down from a record high of 3.34 trillion yuan in January and compared with 885.8 billion yuan a year earlier. Broad M2 money supply in February grew 8.8% from a year earlier, central bank data showed on Wednesday. It rose 8.4% in January. Outstanding yuan loans grew 12.1% from a year earlier compared with 12.1% growth in January.

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