Chinese market rebounds on strong loan data

Mainland China’s equity market ended the session sharply higher on Wednesday, October 12, 2022, as risk sentiment improved on better-than-expected September lending data from the country.

At the close of trading, the benchmark Shanghai Composite Index rose 1.53%, or 45.71 points, to 3,025.51. The Shenzhen Composite Index, which tracks shares of China’s second largest stock exchange, added 2.53%, or 47.53 points, to 1,929.53. The blue-chip CSI300 index rose 1.52%, or 56.62 points, to 3,784.31.

ECONOMIC NEWS: Chinese banks extended 2.47 trillion yuan in new yuan loans in September, up from 1.25 trillion yuan in August, data from the People’s Bank of China showed on Tuesday.

Household loans, including mortgages, reached 650.3 billion yuan in September from 458 billion yuan in August, while corporate loans soared to 1.920 billion yuan from 875 billion yuan, according to central bank data. New yuan loans totaled 18.08 trillion yuan in the first nine months, up 1.36 trillion yuan from a year earlier, central bank data showed.

CURRENCY NEWS: The Chinese yuan strengthened against the dollar on Wednesday, thanks to better-than-expected credit growth in September, the central bank’s promise to rein in the currency’s sharp swings and a steady peg of the midpoint of the currency. The onshore yuan CNY=CFXS was changing hands at 7.1671 at midday, slightly stronger than at the close of the previous session, after the People’s Bank of China pegged the midpoint CNY=PBOC at 7.1103 for one dollar, little changed from the day before.

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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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