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August 18, 2015

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Home » Business » Finance

Shares climb on continued yuan focus

By Ji Xiang | August 18, 2015, Tuesday | Print Edition

SHANGHAI stocks traded higher yesterday as the yuan continued to consolidate under a more market-based system.

The Shanghai Composite Index rose 0.71 percent to 3,993.67 points.

The People’s Bank of China yesterday fixed the yuan midpoint at 6.3969 against the US dollar, stronger than Friday’s fix of 6.3975. Over the past week, the market has been impacted by the PBOC’s surprise decision on Tuesday to adopt a new methodology to determine the reference rate, sending the currency on a three-day downward spiral.

“The possibility of abrupt adjustments in the exchange rate has been reduced substantially as a more market-based price formation mechanism increases flexibility and helps prevent the yuan going against equilibrium,” the PBOC said.

China’s move to upgrade currency pricing was welcomed by the International Monetary Fund, which said on Friday that the notable rise of the yuan in real effective terms this year has boosted the exchange rate to one that is “no longer undervalued.”

The IMF added the new exchange rate formation system would allow market forces to determine the exchange rate.

The China Securities Regulatory Commission assured investors on Friday the China Securities Finance Corp will hold its shares over the long term to stabilize the market.

Sports firms soared after the Chinese Football Association axed its affiliation with the General Administration of Sport of China yesterday. Jiangsu Sainty Corp and China Sports Industry Group Co surged by the daily 10 percent limit to 14.16 yuan (US$2.22) and 29.33 yuan.

FinanceSHANGHAI stocks


 

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