The Mainland China shares closed higher on Thursday, 07 January 2021, with all indices Shanghai Composite Index, Shenzhen Composite Index, and CSI300 index all ending higher, as market players took heart by the central bank's pledge to keep its monetary policy flexible, targeted and appropriate in 2021.
At closing bell, the benchmark Shanghai Composite Index advanced 0.71%, or 25.33 points, to 3,576.21. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 0.21%, or 5.15 points, to 2,426.66. The blue-chip CSI300 index rose 1.77%, or 95.99 points, to 5,513.66.
ECONOMIC NEWS: China's central bank said on Wednesday that it would make its monetary policy flexible, targeted and appropriate in 2021, focusing on supporting small firms as the economy recovers.The People's Bank of China (PBOC) will continue to rely on structural policy tools and credit policies to support small enterprises and extend deferred loan repayments for small businesses. The PBOC said it would deepen reforms of its loan prime rate, while promoting deposit rate liberalization. It will also step up regulation of financial activities by internet platforms and regulation of payment services, requiring personal credit ratings firms to operate with licenses. The central bank will prohibit companies from over-marketing of financial products and luring consumers into excessive borrowing, it added. The central bank also said it would implement prudential management of property finance and improve a policy system of financial support for the rental housing market.
CURRENCY NEWS: China's yuan appreciated flat against the dollar as the central bank set a stronger midpoint. The People's Bank of China set the midpoint rate at 6.4608 per dollar prior to market open, 4 pips weaker than the previous fixing of 6.4604. The spot market was changing hands at 6.4571 at late afternoon, 69 pips firmer than the previous late session close.
Powered by Capital Market - Live News