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China: Stocks end up as authorities seek to calm Brexit fears

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[SHANGHAI] China stocks tracked global markets higher to a three-week closing high on Wednesday as authorities sought to calm anxiety over potential shifts in Beijing's currency policy following last week's Brexit vote.

The CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 0.5 per cent, to 3,151.39, while the Shanghai Composite Index gained 0.7 per cent, to 2,931.59 points.

In an apparent effort to ease fears of rapid yuan depreciation, China's two main official securities newspapers said in front-page articles on Wednesday that there has been no panic selling of the yuan, and market expectations for the currency's value remained steady.

This followed similar remarks by China's central bank on Tuesday as concerns grew that Beijing may be considering devaluing the currency again after Brexit.

In a report published this week, BofA Merrill Lynch Global Research said it expected the yuan depreciation to accelerate, which could trigger more capital outflows, potentially tightening financial conditions.

ANZ predicted that China's exports will be hit by Brexit in the near term, similar to the eurozone debt crisis in 2011-12.

Most sectors rose, with infrastructure and industrial shares leading the gains.

REUTERS