China stocks end morning higher but rate cuts don't dispel fears

miércoles 26 de agosto de 2015 00:51 GYT

* China stocks swing wildly after rate, bank reserve cuts

* CSI300 +1.7 pct; SSEC +0.8 pct; HSI: +0.2 pct

* Banks, property, auto up on monetary easing policies

* Small-caps continue to fall on margin calls-traders

SHANGHAI, Aug 26 (Reuters) - China stocks ended higher on Wednesday morning after wild swings in early trade as investors hoped fresh interest rate cuts by the central bank would stabilise the economy and stop a stock market rout that has seen prices fall 20 percent in four days.

But the market was generally unimpressed with China's strong monetary easing measures announced on Tuesday night, believing much more official support is needed, and traders said shares remained vulnerable to another selloff.

Blue chips reversed early losses, but small-caps continued to slide, with some traders attributing the volatility to margin calls and mutual fund redemptions.

After opening 0.7 percent at open, the blue-chip CSI300 index fell as much as 3 percent but managed to end the morning up 1.7 percent at 3,094.03 points.

The Shanghai Composite Index also reversed early losses of nearly 4 percent, rising 0.8 percent to 2,988.76 points by the lunch break.   Continuación...