China Stocks ends 0.76% up

The Mainland China share market finished session higher on Monday, 25 October 2021, as risk sentiments strengthened on calming concerns over China Evergrande after the property developer statement that it had resumed work on more than 10 real estate projects in six cities including Shenzhen and added it plans to prioritize growth of its nascent electric vehicles business over its troubled core real estate operations.

However, market gains capped on concern that about economic activity after the Chinese capital, Beijing, banned visitors from areas with infections in the past 14 days and Gansu province in the northwest closed tourist sites after coronavirus cases were found.

 

At closing bell, the benchmark Shanghai Composite Index advanced 0.76%, or 27.26 points, to 3,609.86. The Shenzhen Composite Index, which tracks stocks on China's second exchange, gained 0.85%, or 20.55 points, to 2,433.22. The blue-chip CSI300 index increased 0.4%, or 19.79 points, to 4,979.52.

Shares of Mainland developers sank after reports that China will tax owners of residential, commercial properties and lands in more cities. The trial will last for five years before it is signed into law, it added. China Vanke and Jinke Property Group retreated by more than 3%.

CURRENCY NEWS: China's yuan appreciated against the U.S. dollar on Monday after firmer mid-point fixing by central bank and heavy corporate dollar selling. Prior to the market opening, the People's Bank of China (PBOC) set the midpoint CNY=PBOC at 6.3924 per dollar, 0.17% firmer than the previous fix of 6.4032. In the spot market, onshore yuan CNY=CFXS was changing hands at 6.3832 at midday, 0.03% firmer than the previous late session close of 6.385.

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