December 12, 2024 at 02:40 am EST
(MT Newswires) -- Chinese stocks finished higher for a third straight session following reports the country is planning to allow the renminbi to weaken in 2025 in anticipation of higher trade tariffs.
The Shanghai Composite Index, the main gauge of Chinese stocks, increased 0.85% or by 29.01 points, to 3,461.50. The Shenzhen Component Index jumped 1% or by 108.71 points to 10,957.13.
The Chinese government is bracing for higher tariffs in anticipation of the second administration of US President-elect Donald Trump by letting the renminbi slide, Reuters reported Wednesday, citing people familiar with the matter.
However, an analyst from HSBC thinks a weaker renminbi to offset US tariffs is "short-sighted," saying China should be mindful of the impact of a weaker currency on other trading partners, the report said, citing HSBC Chief Asia Economist Fred Neumann.
Meanwhile, CNBC reported that Trump invited President Xi Jinping to his inauguration in January in the White House. However, it is still unclear whether Xi would accept the invitation.
On the IPO front, Sprint Precision Technologies (SHA:688605) closed 534% higher at 60.27 yuan. The precision metal parts producer opened 653% higher than the 11.29 yuan price per share.
In corporate news, Guosheng Financial (SHE:002670) finished 10% higher in Shenzhen following the China Securities Regulatory Commission's approval of the merger and absorption of subsidiary Guosheng Securities. Guosheng Financial will be the surviving entity, which will be rebranded Guosheng Securities.

Sumber : MT Newswires