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Chinese A-shares ope higher on Monday, with the benchmark Shanghai Composite Index up 0.37%, the Shenzhen Component Index up 0.49% and the tech-heavy Chinext Price Index up 0.68%.
Oil and gas companies, catering companies, tourism companies, shipping companies and agricultural companies are outperforming, while education companies, construction machinery makers, drugmakers, internet companies and property developers are mostly lower.
Hong Kong stocks open higher on Monday, with the benchmark Hang Seng Index up 1.14%, the Hang Seng China Enterprises Index up 1.2% and the Hang Seng Tech Index up 1.7%.
Technology heavyweights are mostly higher, with Kuaishou and Baidu up 3.6%, JD.com, Xiaomi, NetEase and Tencent up more than 1%. Biotechnology companies, automakers, catering companies, insurance companies are leading the gains, while telecommunication companies and electric power companies are mostly trading lower.
The PBOC raised the yuan’s fixing by 339 pips to 6.7048 per US dollar on Monday, compared to a fixing of 6.7387 one day earlier.
The PBOC injects 10 billion yuan liquidity to the banking system via 7-day reverse repo on Monday, while 10 billion yuan reverse repo expires, leaving a net zero injection.
The PBOC will conduct 5 billion yuan of three-month central bank swap (CBS) operation on Monday to improve the liquidity of perpetual bonds issued by commercial banks. The CBS will be open to primary dealers for bidding at a fixed rate of 0.1% and it will be due on June 26, 2021.
The CBS scheme allows dealers to swap the perpetual bonds they hold for central bank bills, which will boost market demand for perpetual bonds.