Sunday, December 22, 2024

China Market extends gain on positive equities outlook

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Mainland China share market finished modestly higher for second straight session on Thursday, 25 April 2024, as risk sentiments underpinned on government support and after global investment houses upgraded their views on Chinese shares.

Goldman Sachs’ forecasted a potential surge of up to 40% for Chinese shares if the country introduces reforms for corporate governance, dividend distributions and institutional ownership. The bullish outlook follows UBS’ upgrade on Chinese stocks to overweight, citing competent corporate earnings and fiscal support as the major factors for the upgraded index.

Adding to the positive sentiment is the China Securities Regulatory Commission’s commitment to expanding the stock connect cross-border investment scheme in Hong Kong, a step in boosting the city’s status as an international financial center.

At close of trade, the benchmark Shanghai Composite index was up 0.27%, or 8.08 points, to 3,052.90. The Shenzhen Composite Index, which tracks stocks on China’s second exchange, added 0.21%, or 3.52 points, to 1,698.34. The blue-chip CSI300 index climbed up 0.25%, or 8.66 points, to 3,530.28.

CURRENCY NEWS: China’s yuan was tad lower against the dollar on Thursday. Prior to the market’s opening, the People’s Bank of China set the midpoint rate at 7.1058 per dollar, 10 pips
weaker than the previous fix of 7.1048. The onshore yuan opened at 7.2449 per dollar and was changing hands at 7.2468 by midday, 7 pips softer than the previous late session close.

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First Published: Apr 25 2024 | 3:09 PM IST

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