REFILE-UPDATE 1-China stocks volatile in morning trade after surprise policy easing

domingo 28 de junio de 2015 21:57 GYT
 

(Refiles to remove extra word in first paragraph)

SHANGHAI, June 29 (Reuters) - An opening rally in Chinese stocks petered out quickly on Monday as a surprising, and aggressive, easing in monetary policy appeared to fail to inspire investors to move back into the market.

After suffering their largest daily falls since 2008 last week, the CSI300 index and the Shanghai Composite Index opened up sharply over 2 percent.

But the markets gave up their gains and sank into negative territory within 15 minutes.

The CSI300 index fell 0.7 percent to 4,306.70 points by 0143 GMT, while the Shanghai Composite Index lost 1.5 percent to 4,130.26 points.

The Hang Seng index dropped 1.7 percent, to 26,223.86 points, while the Hong Kong China Enterprises Index lost 2.0 percent, to 12,832.50.

Both indices had slumped over 7 percent on Friday and are down nearly 20 percent from their peak in early June.

Chinese markets have been subject to wild swings almost from minute to minute since a massive rally began in November, making them the most volatile in the world.

The People's Bank of China (PBOC) cut lending rates for the fourth time since November and trimmed the amount of cash that some banks must hold as reserves, stepping up efforts to support an economy that is headed for its poorest performance in a quarter century.   Continuación...