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Mainland China share market finished session significantly in negative territory on Wednesday, 27 March 2024, with strong selling by foreign investors amid concerns about a new US law, the Inflation Reduction Act, weighing on the market even as data showed the economy is gradually recovering. Foreign investors sold a net 9 billion yuan ($1.25 billion) of Chinese shares via Stock Connect so far for the day, and were set to log the biggest daily outflow since mid January. At close of trade, the benchmark Shanghai Composite index stumbled 1.26%, or 38.34 points, to 2,993.14. The Shenzhen Composite Index, which tracks stocks on China's second exchange, dropped 2.8%, or 49.04 points, to 1,703.25. The blue-chip CSI300 index tanked 1.16%, or 40.96 points, to 3,502.79. ECONOMIC NEWS: China's Industrial Profits Surge 10.2% in Early 2024- China's industrial profits rebounded strongly, rising 10.2% year-on-year to CNY 914.06 billion in the first two months (January and February) of 2024. This marks a sharp turnaround from a 2.3% decline in 2023, signaling a robust start to the year for the Chinese economy. The recovery was driven by a 12.7% increase in profits in the private sector, while state-owned companies also saw improvements. Notable sectors driving the rebound include the computer industry, communications, and other electronic equipment, along with electricity and non-ferrous metal smelting and rolling. CURRENCY NEWS: China's yuan weakened against a greenback on Wednesday. Prior to the market's opening, the People's Bank of China set the midpoint rate at 7.0946 per U.S. dollar, weaker than the previous fix of 7.0943. In the spot market, the onshore yuan CNY=CFXS yuan was changing hands at 7.2276 at midday, 126 pips weaker from the previous late session. Powered by Capital Market - Live News
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