China stocks are rising as interest rate cuts boost investor confidence

China stocks are rising as interest rate cuts boost investor confidence

The CSI300 banks index rose 2.4%, while consumer staples added 1.9%. ** Real estate developers gained 1% after Reuters reported China is drafting nationwide rules to make it easier for developers to access funds from sales still held in escrow accounts, in its latest move to ease a severe cash crunch in the sector. Chipmakers eased 0.3%, as China’s industry ministry projected tight supplies of semiconductors to continue over a relatively long period of time. The Shanghai Stock Exchange (SSE) said it has asked companies listed on the Nasdaq-style STAR Market to disclose environmental, social and governance (ESG)-related information in their annual reports.

China’s stock market surged on Thursday as a series of key policy rates and lending benchmarks were lowered to help the country’s slowing economy, with investors hoping for more policy easing from Beijing. At the end of the morning session, the CSI300 index was up 1.1 percent to 4,833.21, while the Shanghai Composite Index was up 0.3 percent to 3,568.35. The Hang Seng index is now at 24,689.32, up 2.3 percent. The Hong Kong China Enterprises Index is now at 8,682.55, up 2.9 percent. ** The one-year loan prime rate (LPR) was cut by ten basis points, while the five-year LPR was cut by five basis points – the first cut since April 2020.

In Hong Kong, the Hang Seng Tech index rose 3.3%, with Tencent Holdings, Alibaba Group and Meituan gaining between 4.4% and 6.9%. ** China’s cyberspace regulator denied on Wednesday issuing a document with new guidelines for the nation’s big internet companies that would require them to seek approval for new investments and fundraising. Mainland developers listed in Hong Kong jumped nearly 5%, with Shimao Group, Country Garden Holdings , Sunac China Holdings up between 6% and 12%. ** The Hang Seng Finance Index rose 1.6%, with insurer AIA Group up 4.8%. Consumer staples added 2.8%.

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