China Stocks rise on US-China trade talks

The Mainland China share market finished session higher on Friday, 08 May 2020, as talks between US and Chinese trade officials lifted sentiment. Investors also cheered Beijing opening up its financial markets further to foreign investors. At closing bell, the benchmark Shanghai Composite Index rose 0.83%, or 23.82 points, to 2,895.34. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 1.17%, or 20.96 points, to 1,809.17. The blue-chip CSI300 index advanced 1%, or 38.73 points, to 3,963.62.

The gains in Mainland China share market were driven by reports that top US and Chinese trade representatives discussed their Phase 1 trade deal earlier in the day, with China saying it would work with Washington to improve the atmosphere for implementing the Phase 1 trade deal signed this year. The officials also agreed to "strengthen cooperation on macro economy and public health."

 

China finalized rules on Thursday that would scrap quotas under two major inbound investment schemes, giving qualified foreign institutions unlimited access to Chinese stocks and bonds.

CURRENCY NEWS: China's yuan was up against the dollar on Friday, inline with firmer mid-point fixing by central bank. Also backing the yuan, the PBOC said it will issue 30 billion yuan of offshore bills next week. Such issuances usually decrease offshore yuan liquidity and make shorting the currency more costly. Prior to market opening, the People's Bank of China set the midpoint rate CNY=PBOC at 7.0788, up by 0.2% from 7.0931 set previous day.

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