The Mainland China equity market closed lower on Monday, 13 August 2018, following slide in other Asian bourses, as investors dumped risky assets amid concern that the Turkey crisis would hurt the stability of the world economy and the global financial system. Most sectors lost ground for the day, though tech firms bucked the trend on hopes of policy boost from Beijing as the country aims to reduce its dependence on foreign technology amid trade frictions with the United States. At closing bell, the benchmark Shanghai Composite Index declined 0.34%, or 9.44 points, to 2,785.87, meanwhile the Shenzhen Composite Index, which tracks stocks on China's second exchange, rose 0.31%, or 4.75 points, to 1,520.71. The blue-chip CSI300 index slipped 0.43%, or 14.68 points, to 3,390.34.

Globally markets were fragile on heightened tensions between Turkey and the US. The Turkish lira retraced to a new record low in Asia's Monday trade following a recent geopolitics-triggered free fall in the currency. On Monday, the lira dropped to a fresh all-time low of 7.24 against the greenback, before paring some losses after moves were taken to assuage market nerves frayed by the currency's recent weakness. The retracement in losses came after the Turkish central bank moved to improve liquidity during Asia afternoon trade. Among the moves announced Monday was a slashing of lira required reserves held by banks by 250 basis points for all maturities. Before that, Finance Minister Berat Albayrak had said on Sunday that the government had a plan in place following the fall in the lira. The lira's plunge is reminding investors of past crises in emerging markets and rattling nerves worldwide.

Turkey has drafted a economic action plan and will start implementing it on Monday morning to ease investor concerns, Finance Minister Berat Albayrak said on Sunday, after the lira plunged to a fresh low in early Asia-Pacific trade.

Shares of China's leading tech firms inclined, with more than 10 IT firms closing higher at the maximum allowed limit of 10%, on hopes of policy boost from Beijing as the country aims to reduce its dependence on foreign technology amid trade frictions with the United States.

NEWS FROM PRESS: China okays $11.45 bln in new urban rail projects in Changchun -- China's state planner has approved a total 78.7 billion yuan ($11.45 billion) of urban railway projects in the capital of the northern Jilin province, the country's first urban rail project to be approved in a year. The approval for the projects in Changchun city signals the restart of infrastructure projects that Beijing had put on hold as it sought to contain local government debt, part of its multi-year risk crackdown. The Politburo, China's top decision-making body, said in July that China could boost infrastructure spending.

CURRENCY NEWS: China's yuan fell against the dollar on Monday, inline with soft mid-point fixing by central bank and as a renewed rout in the Turkish lira. The People's Bank of China (PBOC) lowered the yuan midpoint rate to 6.8629 per dollar, its weakest level since May 31, 2017, which was 0.3% softer than Friday's fix of 6.8395. The onshore yuan opened spot trade at 6.8762 per dollar and had edged higher to 6.8755 by midday. Still, that was 315 pips weaker than the previous late session close and 0.18% softer than the midpoint. The onshore spot yuan was swinging in a range of less than 90 pips