Main­land shares edge up on pol­icy sup­port

Global Times US Edition - - BIZMARKETS -

China stocks closed higher on Mon­day as in­vestors took heart from pol­icy sup­port mea­sures aimed at shoring up weak mar­kets and pro­mot­ing growth, and as spec­u­la­tion swirls about a pos­si­ble cut in bench­mark lend­ing rates.

At the close, the Shang­hai Com­pos­ite in­dex was 0.91 per­cent higher at 2,703.51 points. China’s blue-chip CSI300 in­dex rose 1.13 per­cent, to 3,294.60 points.

The CSI300 fi­nan­cial sec­tor sub-in­dex ended 1.83 per­cent higher, the con­sumer staples sec­tor gained 1.24 per­cent and the health­care sub-in­dex closed up 1.1 per­cent.

The smaller Shen­zhen in­dex turned around from ear­lier losses to close 0.58 per­cent higher. The start-up board ChiNext Com­pos­ite in­dex trimmed losses but still ended 0.63 per­cent lower after the se­cu­ri­ties reg­u­la­tor on the week­end tight­ened rules over good­will im­pair­ment, which could hit some com­pany earn­ings.

Shares in Chi­nese real es­tate de­vel­op­ers jumped on ris­ing ex­pec­ta­tions of a rate cut that could lower bor­row­ing costs for de­vel­op­ers and home buy­ers. The CSI300 real es­tate in­dex added 4.18 per­cent.

An in­dex track­ing se­cu­ri­ties firms rose 3.06 per­cent. Se­cu­ri­ties firms are also seen as ben­e­fi­cia­ries of poli­cies to sup­port mar­kets and of plans to launch a new tech­nol­ogy board.

China’s stub­bornly weak credit growth has spurred talk of its first cut in bench­mark lend­ing rates in three years, but economists and pol­icy in­sid­ers say con­cerns about a po­ten­tial knock to its cur­rency will likely give the cen­tral bank pause.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.