China Stocks end mixed after US executive order

The Mainland China share market finished mixed on Friday, 09 July 2021, with the Shanghai Composite Index settling lower, while the Shenzhen Composite Index closed higher, as a major U.S. shares index removed more Chinese companies after an updated U.S. executive order barring domestic investment in firms with alleged ties to China's military.

At closing bell, the benchmark Shanghai Composite Index was down 0.04%, or 1.42 points, to 3,524.09. The Shenzhen Composite Index, which tracks stocks on China's second exchange, rose marginal 0.07%, or 1.64 points, to 2,436.84. The blue-chip CSI300 index fell 0.37%, or 18.82 points, to 5,069.44.

S&P Dow Jones Indices has announced that it will remove more Chinese companies from its indices to align with an executive order by US President Joe Biden that prohibits investment in businesses believed to have ties to the Chinese military.

 

The company, which maintains the Dow Jones Industrial Average and Standard & Poor's 500, said on Wednesday it would drop 25 companies - including Aerospace Communications Holdings, China Shipbuilding Industry Co and Inner Mongolia First Machinery - from its benchmarks on August 2.

Signed last month, Biden's order expanded on one issued by former president Donald Trump, which prohibited Americans from investing in companies that Washington linked to the Chinese military. Biden's order increased the number of blacklisted Chinese companies to 59.

ECONOMIC NEWS: China Consumer Prices Eases To 1.1% On Year In June- China consumer prices slowed to 1.1% on year in June, the National Bureau of Statistics said on Friday, as compared to May's eight-month high of 1.3%. On a monthly basis, consumer prices fell 0.4% following the 0.2% decline a month earlier. Meanwhile, Chinese producer price index for June rose 8.8% as compared with a year ago. The June PPI reading was a slight decrease in pace from the 9% increase in May.

CURRENCY NEWS: China yuan went up against the dollar on Friday despite weaker mid-point fixing by central bank. Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.4755 per dollar, 50 pips or 0.08% weaker than the previous fix of 6.4705. In the spot market, the onshore yuan CNY=CFXS was changing hands at 6.4836 at midday, 74 pips firmer than the previous late session close.

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