SHANGHAI, Nov 19 (Reuters) - China stocks rose the most in two weeks on Tuesday, as a cut in a key interbank funding rate on Monday bolstered hopes for more government stimulus to prop up slowing growth. The blue-chip CSI300 index rose 1.0%, to 3,947.04, while the Shanghai Composite Index gained 0.9%, to 2,933.99.
The People's Bank of China unexpectedly trimmed a closely watched money market funding rate on Monday, the first such cut in more than four years and a signal to markets that policymakers are ready to act to prop up slowing growth.
The seven-day reverse repurchase rate was cut to 2.50% from 2.55%.
Ting Lu, chief China economist at Nomura International, said he expected a couple of small, 5-basis-point cuts in money market funding rates before mid-2020.
"It's now very evident that Beijing has been stepping up efforts to stabilize growth as top leaders are increasingly concerned about the downward pressure on growth," Lu wrote.
"I believe Beijing is to plan a bigger fiscal deficit and bigger amount of special bonds in 2020. Beijing might especially wish to boost infrastructure investment growth."
Investors are awaiting clearer news on the progress of U.S.-China trade negotiations. Overnight, CNBC reported the mood in Beijing was pessimistic about the prospects of sealing an agreement. On the other hand, a new extension allowing U.S. companies to keep doing business with Chinese telecoms giant Huawei suggested something of an olive branch.
The CSI300 financial sector sub-index was higher by 0.34%, the consumer staples sector up 0.92%, the real estate index up 1.65% and the healthcare sub-index up 2.1%.
The smaller Shenzhen index ended up 1.83% and the start-up board ChiNext Composite index was higher by 2.77%.
Around the region, MSCI 's Asia ex-Japan stock index was firmer by 0.51%, while Japan's Nikkei index closed down 0.53%.
At 07:15 GMT, the yuan was quoted at 7.0248 per U.S. dollar, 0.01% firmer than the previous close of 7.0255.
The largest percentage gainers in the main Shanghai Composite index were Jiangsu Zongyi Co Ltd, up 10.08%, followed by Jiangsu Lugang Culture Co Ltd, gaining 10.07%, and Panda Financial Holding Corp Ltd, up by 10.05%.
The largest percentage losers in the Shanghai index were Zhejiang Shengda Bio-Pharm Co Ltd, down 7.14%, followed by Ribo Fashion Group Co Ltd, losing 4.94%, and Jiangxi Lianchuang Opto Electronic Science &Technology Co Ltd, down by 4.26%. (Reporting by Shanghai Newsroom; Editing by Subhranshu Sahu)
Sumber : reuters.com
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