China Stocks end little higher

The Mainland China share market finished session little higher on Monday, 28 December 2020, after official data showed robust growth in profits at China's industrial firms in November, their seventh straight month of gains, supported by strong industrial production and sales, as manufacturers continue their recovery from the COVID-19 downturn. However, market gains were marginal after Beijing stepped up its regulation of China's technology sector.

At closing bell, the benchmark Shanghai Composite Index fell 0.57%, or 19.21 points, to 3,363.11. The Shenzhen Composite Index, which tracks stocks on China's second exchange, dropped 1.13%, or 25.70 points, to 2,255.55. The blue-chip CSI300 index declined 0.14%, or 7.10 points, to 5,000.02.

 

Chinese regulators have ordered Ant Group, the world's largest financial technology company, to rectify its businesses and comply with regulatory requirements amid increased scrutiny of anti-monopoly practices in the country's internet sector. The People's Bank of China, the country's central bank, summoned Ant executives on Saturday and ordered them to formulate a rectification plan and an implementation timetable of its business, including its credit, insurance and wealth management services, the regulators said in a statement Sunday. Meanwhile, Alibaba Group said it has increased its share repurchase program to $10 billion from $6 billion.

ECONOMIC NEWS: China Industrial Profits Rise 15.5% On Year In November--China's industrial profits increased 15.5 percent on a yearly basis in November, following a 28.2 percent surge posted in October, data released by the National Bureau of Statistics showed over the weekend. The slowdown in November was largely driven by a higher base compared with October, the statistical office said. During January to November period, profits of industrial firms climbed 2.4 percent from the same period last year.

CURRENCY NEWS: China's yuan appreciated against the dollar as the central bank set a firmer midpoint. Prior to market opening, the People's Bank of China (PBOC) set its official yuan midpoint to 6.5236 per dollar, 97 pips, or 0.14%, firmer than the previous fix of 6.5333, the strongest guidance since June 26, 2018. In the spot market, onshore yuan opened at 6.5356 per dollar and was changing hands at 6.5303 at close, 109 pips firmer than the previous late session close.

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