Yuan rises slightly as China expedites infrastructure projects

Posted On: January 06, 2015

The yuan rose 0.11 percent on Tuesday to 6.2130 per U.S. dollar in Shanghai after falling 0.26 percent on Monday, Bloomberg reported. The publication noted that China is expediting work on $1.1 trillion worth of infrastructure projects in an effort to bolster an economy that grew at its slowest level since 1990 during 2014.

Despite the underwhelming annual growth, China's Purchasing Managers' Index nonetheless increased from 53 in November to 53.4 in December. Meanwhile, the economy rose 7.4 percent in 2014.

"There's been speculation in the market about the probability of more stimulus in the Chinese economy," Khoon Goh, a Singapore-based strategist with Australia & New Zealand Banking Group Ltd. "The latest talk about infrastructure spending is seen in the light of authorities looking at ways to try to stimulate the economy."

Reuters reported that the CSI300 Index, which measures stock rates of the largest companies in Shanghai and Shenzhen, China, closed flat on Tuesday at 3,641.06. The Shanghai Composite Index ended at 3,351.45 points.

Some of the more active stocks in Shanghai included the Agricultural Bank of China, which rose 1.8 percent to 3.96 yuan, the Bank of China, which increased 3.4 percent to 4.57 yuan, and the Commercial Bank of China, which was up 0.8 percent to 5.10 yuan.

Category: Industry News


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