The Mainland China share market finished session lower on Tuesday, 03 August 2021, as risk aversion selloff triggered amid lingering concerns over the spread of the Delta virus variant and China's regulatory crackdown over online gaming companies in dramatic ways after China news outlet labels them 'spiritual opium' for teens.
At closing bell, the benchmark Shanghai Composite Index declined 0.47%, or 16.29 points, to 3,447.99. The Shenzhen Composite Index, which tracks stocks on China's second exchange, fell 0.53%, or 12.95 points, to 2,423.97. The blue-chip CSI300 index edged up 0.01%, or 0.72 point, to 4,934.46.
The spread of the Delta variant from the mainland's coast to inland cities prompted authorities to implement strict measures including mass testing. China reported 90 new confirmed COVID-19 cases in the mainland for Aug. 2. While that was down from 98 a day earlier, the number of locally transmitted infections rose to 61 from 55 cases a day earlier.
The central city of Wuhan, where the virus causing COVID-19 first surfaced in late 2019, announced mass testing of all residents following the detection of three domestically transmitted cases in the city. The rise of Delta variant infections poses economic risks and fresh challenges for authorities who have for months managed to avert any widespread outbreak of the coronavirus.
Online gaming stocks tumbled after state media branded online gaming "opium" and likened it to a drug. Accusations of spiritual opium sent shares of the companies in the gaming industry tumbling amid fears a new regulatory chapter was about to begin.
CURRENCY NEWS: China yuan softened against the dollar on Tuesday, despite lower mid-point fixing by central bank, amid worries over spreading domestic COVID-19 cases of the Delta variant. Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate at 6.461 per dollar, slightly firmer than the previous fix of 6.466. In the spot market, onshore yuan opened at 6.4624 per dollar and was changing hands at 6.4652 at midday, 32 pips softer than Monday's late session close. The offshore yuan was slightly weaker at 6.4657 per dollar.
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