The Mainland China shares advanced on Monday, 21 December 2020, with the Shanghai Composite Index and blue-chip CSI300 index closing higher, as investors cheered Beijing's continued policy support to shore up its economy hurt by the coronavirus crisis. However, market gains capped amid concerns over frictions between the US and China trade spat, Brexit uncertainties and tighter coronavirus lockdowns in some countries.
At closing bell, the benchmark Shanghai Composite Index was up 0.76%, or 25.67 points, to 3,420.57. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 1.87%, or 42.41 points, to 2,304.98. The blue-chip CSI300 index climbed up 0.94%, or 46.87 points, to 5,046.84.
The Central Economic Work Conference pledged no U-turn in policy support to companies. China will put its focus on eight tasks for the coming year, including strengthening strategic technological innovation, ensuring the control of supply chains and boosting domestic demand.
President Donald Trump signed into law on Friday the Holding Foreign Companies Accountable Act, which empowers regulators to remove Chinese companies from US stock exchanges if they fail to comply with auditing oversight rules within three years.
The Trump administration also added 60 Chinese companies, including SMIC and closely held drone manufacturer SZ DJI Technology, to the Department of Commerce's so-called entity list. Beijing has condemned the US move and threatened to impose countermeasures.
Two stocks debuted in China. Property management firm Shenzhen SDG Service surged 157 per cent to 48.27 yuan in Shenzhen while Dongguan Dingtong Precision Metal jumped 119 per cent to 43.88 yuan in Shanghai.
CURRENCY NEWS: China's yuan weakened to a one-week low against the dollar as the central bank set a softer midpoint. Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at an over two-week low of 6.5507 per dollar, 192 pips or 0.29% weaker than the previous fix of 6.5315. In the spot market, the onshore yuan CNY=CFXS was changing hands at 6.5506, weaker by 0.18% than the previous late session close at 6.5385.
Powered by Capital Market - Live News
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU