Share prices on China's Shanghai and Shenzhen bourses opened over one percent higher on Monday boosted by the central bank's rates cut last Friday but major indices later turned tepid and kept narrow-band correction for the rest of the day due largely to profit-taking sentiment.
The People's Bank of China (PBOC) announced last Friday to cut its benchmark one-year lending and deposit rates by 25 basis points each to 4.35 percent and 1.5 percent, from October 24. The central bank also cut the RRR for all financial institutions by 50 basis points.
This is the fifth RRR reduction and the sixth round of interest cuts in the past year. For the whole day, the benchmark Shanghai Composite Index gained 0.5 percent to end at 3,429.58 points. The Shenzhen Composite Index edged up 0.68 percent to end at 2,030.48. The SME Index for small firms went up 0.84 percent to end at 7,889.24 and the ChiNext Index dropped 0.43 percent to close at 2,527.48. Combined turnover of the two bourses expanded to 1.11 trillion yuan from 1.04 trillion yuan on the previous trading day.
Stocks of agricultural, logistics, public transport, engineering machinery, securities brokerage, chemical fiber, environmental protection, shipbuilding, transport equipment and automobile sectors led the gainers while those in commercial, education, pharmaceutical, property and internet sectors led the losers.
On the stock index futures market, the IF November contract went up 0.53 percent to end at 3,470.2, reversing to a discount of 119.26 points to the underlying Hushen 300 Index, which rose 0.5 percent to end at 3,589.26. The SSE 50 November contract added 0.26 percent to end at 2,316.4, keeping a discount of 33.62 points to the underlying SSE 50 Index, which edged up 0.26 percent to close at 2,350.02. The CSI November contract fell 0.12 percent to end at 6,865.0, keeping a discount of 321.75 points to the underlying CSI 500 stock index, which advanced 0.68 percent to end at 7,186.75 percent.
Latest comments