China stocks slip as in­vestors stay side­lines

Global Times US Edition - - BIZMARKETS -

Chi­nese stocks closed lower on Mon­day, though re­bounded a bit fol­low­ing their deep­est one-week dive since Fe­bru­ary as in­vestors await the lat­est twist in the US-China trade dis­pute.

The Shen­zhen Com­po­nent In­dex closed 1.51 per­cent lower at 7,444.48 points. China’s bluechip CSI300 in­dex was down 1.40 per­cent at 3,126.45 points. The smaller Shen­zhen in­dex was down 1.43 per­cent.

Yi Gang, gover­nor of the Peo­ple’s Bank of China, said over the week­end that China had fur­ther room to ad­just in­ter­est rates and cut the re­serve re­quire­ment ra­tio (RRR) for banks. The lat­est round of RRR cut took ef­fect on Mon­day.

On Sun­day, Yi said the cen­tral bank still has “plenty of mone­tary in­stru­ments” and “room for ad­just­ment” with re­spect to coun­ter­ing the im­pact of a trade war.

In­dus­try an­a­lysts said gov­ern­ment sup­port will bring con­fi­dence to the mar­ket soon. But on­go­ing wor­ries about the US-China trade war, and pos­si­bil­ity, al­beit re­mote, still weighed on in­vestors’ ap­petite.

“Spring” for China’s stock mar­ket “is around the cor­ner,” Liu Shiyu, chair­man of the China Se­cu­ri­ties Reg­u­la­tory Com­mis­sion (CSRC) said on Mon­day.

The largest per­cent­age gain­ers in the main Shang­hai Com­pos­ite in­dex were Yun­nan Metropoli­tan Real Es­tate De­vel­op­ment Co, up 10.16 per­cent.

So far this year, the Shang­hai stock in­dex is down 21.17 per­cent. Shang­hai stocks have de­clined 7.6 per­cent this month.

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