The Mainland China share market closed lower on Thursday, 07 April 2022, following decline in other regional bourses after minutes from the Fed's March meeting revealed discussions on reducing the size of the central bank's balance sheet over time in a predictable manner.
Market sentiments also dampened by the country's most severe COVID-19 wave since the Wuhan outbreak clouded the economic growth outlook, despite pledges by the authorities to roll out more policy support. Some 23 Chinese cities are under total or partial lockdown, affecting an estimated 193 million people in areas accounting for 22% of China gross domestic product.
Market losses were, however, capped as the country's cabinet pledging to use monetary policy tools at an "appropriate time" to boost the economy amid a Covid outbreak and property-market woes.
At close of trade, the benchmark Shanghai Composite Index declined 1.42%, or 46.73 points, to 3,236.70. The Shenzhen Composite Index, which tracks stocks on China's second exchange, fell 1.9%, or 40.42 points, to 2,087.53. The blue-chip CSI300 index sank 1.28%, or 54.74 points, to 4,209.10.
CURRENCY NEWS: China's yuan was down against the U.
S. dollar despite firmer mid-point fixing by the central bank, after minutes from the March meeting of the US Federal Reserve indicated widespread support for large rate hikes, boosting the greenback. Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.3659 per dollar, its firmest since April 1. By midday, the yuan was changing hands at 6.3621 per dollar, 33 pips weaker than Wednesday's late session close. The offshore yuan also weakened, to 6.3675 per dollar from a close of 6.3595.
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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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