The Mainland China share market finished lackluster session marginal lower on Thursday, 25 March 2021, as risk sentiments dampened amid regulatory concerns after the US adopted rules requiring Chinese and other foreign-listed companies to submit financial audits, or face ejection from Wall Street.
At closing bell, the benchmark Shanghai Composite Index fell 0.1%, or 3.47 points, to 3,363.59, the lowest level since December 11, 2020. The Shenzhen Composite Index, which tracks stocks on China's second exchange, dropped 0.02%, or 0.35 points, to 2,166.40. The blue-chip CSI300 index fell 0.05%, or 2.34 points, to 4,926.35.
The US Securities and Exchange Commission is taking initial steps to force accounting firms to let regulators review the financial audits of overseas companies. The penalty for non-compliance, as stipulated by a law known as The Holding Foreign Companies Accountable Act (HFCA) that Congress approved in December, is ejection from the New York Stock Exchange or Nasdaq.
The pressure on Chinese tech stocks came as the U. S. Securities and Exchange Commission announced Wednesday the adoption of measures that would remove foreign companies from American stock exchanges if they do not comply with U.
S. auditing standards. That could have an impact on dual-listed Chinese firms such as Baidu and Alibaba.
Two companies debuted in China. In Shanghai, Hangzhou Alltest Biotech rose 30 per cent from its offer price of 133.67 yuan. Cosmetics manufacturer Yunnan Botanee Bio-Technology rose 244 per cent from its listing price of 47.33 yuan in Shenzhen.
CURRENCY NEWS: China's yuan softened to a two-week low against the dollar on Thursday after weaker mid-point fixing by the central bank. Prior to the market open, the People's Bank of China set the midpoint rate CNY=PBOC at 6.5282 per dollar, also a two-week low. Spot yuan CNY=CFXS changed hands at 6.5326 at midday, after touching the lowest level since March 9.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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