China's stock exchange-traded T-bonds ended up Monday after the central bank's interest rate cut. The Government Bond Index on the Shanghai Stock Exchange (SSE) closed up 0.02 percent at 148.86 points. Turnover swelled 216.58 percent to 341.91 million yuan.
China's central bank on Sunday announced an interest rates cut starting May 11, the third time since November last year, to bolster the real economy. The People's Bank of China lowered the one-year lending rate by 0.25 percentage point to 5.1 percent and cut the one-year deposit rate by the same amount to 2.25 percent, effective Monday.
Traders noted that the interest rate cut to some extent fueled up bond buyer's confidence and provided support to the bond market. SSE Corporate Bond Index ended up 0.06 percent at 186.17 points Monday. Turnover expanded 18.18 percent to 1.69 billion yuan. SSE-quoted convertibles posted gains on Monday with 6 advancers and 1 decliner. Shanghai Composite Index spiked 3.04 percent to close at 4,333.58 points on the same day.
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