China: Stocks end up as authorities seek to calm Brexit fears
[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
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Capital Markets & Currencies
Singapore stocks end lower after US market wobbles ahead of CPI data; STI down 0.2%
LSEG reports in-line first quarter as Microsoft partnership progresses
Japan brokerage Daiwa’s Q4 profit more than doubles as markets recover
South Korea readies new system to detect illegal short-selling
Asia: Markets mixed as global rally stalls, eyes on yen
Singapore shares retreat at Thursday’s open; STI down 1.1%