China stocks slip as investors stay sidelines
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.