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Investors not convinced, China stocks slip again

CSI300 index of the biggest listed companies in Shanghai and Shenzhen closed down 0.6 per cent
Hong Kong/Shanghai: China’s turbulent stock markets slipped again on Wednesday, as a double-barreled blast of central bank stimulus failed to convince investors of Beijing’s ability to jolt the world’s second biggest economy out of its slowdown.
After watching share prices tumble around 25 per cent in a little more than a week, the People’s Bank of China re-entered the fray late on Tuesday, cutting interest rates and further loosening bank lending restrictions. The response from China’s two main stock indexes — never reliable barometers of the domestic economy — was typically erratic, lurching between gains and losses of more than three per cent before ending the day modestly lower.
European markets had risen sharply immediately after the People’s Bank of China;s move on Tuesday, but US indexes turned negative after an initial leap, setting the tone for a lackluster session in Asia. “The whole market sentiment is still risk-off, which is why markets have taken the latest move from Beijing in their stride and believe more is needed to restore investor sentiment,” said Grace Tam, global markets strategist at JP Morgan Asset Management in Hong Kong. The CSI300 index of the biggest listed companies in Shanghai and Shenzhen closed down 0.6 per cent.
( Source : reuters )
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