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China Market ends slightly lower

Mainland China share market finished session marginally lower on Wednesday, 27 July 2022, after moving in a narrow range, as risk sentiments were muted after the International Monetary Fund cut its outlook for global economic growth in 2022 by 0.4 percentage point from its April forecast due to Russia’s war in Ukraine and China’s COVID-19 lockdowns.

Also, most investors sat on the sidelines ahead of the release later in the day of the outcome of a US Federal Reserve policy setting meeting and the Politburo meeting later this week, at which top decision-makers gather to discuss their next policy moves.

At close of trade, the benchmark Shanghai Composite Index fell marginal 0.05%, or 1.68 points, to 3,275.76. The Shenzhen Composite Index, which tracks stocks on China’s second exchange, added 0.33%, or 7.31 points, to 2,194.54. The blue-chip CSI300 index was down 0.49%, or 20.94 points, to 4,225.04.

Domestic COVID-19 uncertainties continued to weigh on China’s economic recovery.

The major city of Wuhan temporarily shut some businesses and public transport in a district with almost a million people on Wednesday.

Investors continued to be worried about the property sector, after Country Garden Holdings Co Ltd said on Wednesday it planned to raise HK$2.83 billion from a share sale, raising proceeds for refinancing offshore debt, general working capital and future development purposes.

Market participants are also eyeing a potential meeting between Chinese and US leaders. Joe Biden and Xi Jinping are expected to talk on Thursday, amid tensions over Taiwan and Russia’s invasion of Ukraine.

CURRENCY NEWS: China’s yuan declined against the US dollar, as softer mid-point fixing by central bank. Prior to market opening, the People’s Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.7731 per dollar, 0.31% weaker than the previous fix 6.7483. In the spot market, the onshore yuan CNY=CFXS was changing hands at 6.7661 at midday, 12 pips weaker from the previous late session close.

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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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