At close of trade, the benchmark Shanghai Composite index added 0.08%, or 2.42 points, to 3,197.76. The Shenzhen Composite Index, which tracks stocks on China's second exchange, fell 0.17%, or 3.34 points, to 1,995.28. The blue-chip CSI300 index declined 0.49%, or 18.82 points, to 3,789.34.

ECONOMIC NEWS: China's Trade Surplus Plummets to Over 1-Year Low in May as Exports Shrink- China's trade surplus in May unexpectedly dropped to a one-year low due to a significant decline in exports. Data from the Customs Administration revealed a trade surplus of $65.8 billion, the lowest since April 2022 when COVID-19 impacted trade. The figure was below expectations of a surplus of $95.2 billion and lower than the previous month's reading of $90.2 billion. The decline in the trade surplus was primarily driven by a larger-than-expected 7.5% decrease in exports compared to the same period last year. However, there were indications of improvement in local demand as imports recorded a smaller drop than anticipated. Chinese trade surplus hit a one-year low in May due to a sharp drop in exports, indicating challenges posed by weak overseas demand. Manufacturing activity also struggled as foreign demand remained sluggish. Imports in May declined by 4.5%, better than expected and showing a slight recovery. Despite COVID lockdowns providing a low base for comparison, both imports and exports fell.

CURRENCY NEWS: China's yuan depreciated against the dollar on Wednesday, as softer official guidance fixing and the disappointing export data. Prior to market opening, the People's Bank of China set the midpoint rate CNY=PBOC at 7.1196 per U.S. dollar, weaker than the previous fix of 7.1075 per U.S. dollar. In the spot market, the yuan CNY=CFXS was changing hands at 7.1195 around midday, 15 pips weaker than the previous late session close.

Powered by Capital Market - Live News