Tribble Agency
Tribble Agency


Hong Kong shares close down, China growth target awaited

The monetary authority cut interest rates for the sixth time in less than a year on Friday, while the European Central Bank has indicated it could expand its stimulus program.

Shanghai stocks ended a seesaw session with modest gains, with the benchmark Shanghai Composite Index up 0.4 per cent to 3,387.32.

Chinese shares closed higher on Monday after the central bank cut the benchmark interest rates last Friday.

The CSI300 Index of the largest listed companies in Shanghai and Shenzhen fell 1.9 percent to 3,524.92 points, while the Shanghai Composite Index lost 1.7 percent to 3,375.20 points.

Mainland stocks bounced back on Thursday but trade was choppy, with traders turning their attention to the conclusion of a key Communist Party meeting in Beijing.

The one-year lending rate will be cut to 4.35 percent from 4.60 percent effective Saturday the PBOC said on its website, while the one-year deposit rate will fall to 1.50 percent from 1.75 percent.

"The market was slightly buoyed by the central bank's rate cut".

Finance and insurance stocks again weighed on indexes as investors continued to digest weak bank earnings and deposit rate liberalisation, a potential negative for banking profit margins.

How was the third quarter for the Chinese economy?

China needs to engineer economic restructuring, policy reform, market liberalization, and slower credit uptake with the aim of shifting economic growth drivers away from State-led investment, without sacrificing short-term macroeconomic stability, which is a re-balancing challenge, according to Moody's.

The yuan was little changed at 6.3528 per dollar in Shanghai, after weakening as much as 0.13 percent. It also lowered the RRR for financial institutions by 0.5 percentage points, to further reduce the cost of financing.

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