China's markets shut for New Year break

03 Jan, 2006

China's foreign exchange, stock and futures markets will be closed on Monday and Tuesday for the New Year holidays. Trading will resume on Wednesday, January 4.
China's yuan closed at 8.0702 versus the dollar on Friday, December 30, having appreciated a further 0.5 percent since Beijing revalued the currency by 2.1 percent and dropped its peg against the dollar on July 21.
Some economists expect that trend to extend into next year - or even accelerate, depending on the central bank's stance. The stock market index dropped 8.3 percent in 2005 to become Asia's worst performer for the second year running, hit partly by Beijing's unpopular programme to float $250 billion worth of non-traded, government-held stock in listed companies. But the benchmark index, which ended at 1,161.057 points on Friday, had rebounded about 14 percent since plumbing eight-year lows in July - aided by the yuan revaluation. Analysts predict a bounce also in early 2006.
In copper futures, the most active March contract on the Shanghai Futures Exchange ended at 41,720 yuan ($5,170) on Friday, up 320 yuan from Thursday's close and jumping 46 percent in 2005. The exchange also trades fuel oil futures. Copper prices on both domestic and international markets had hit repeated record highs in 2005. Analysts forecast sustained strength in 2006 but also expect more volatile trade.

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