China stocks open up sharply after policy easing

domingo 28 de junio de 2015 21:35 GYT
 

SHANGHAI, June 29 (Reuters) - China stocks jumped more than 2 percent on Monday after a surprise weekend cut in interest rates and bank reserve ratios by the People's Bank of China.

The CSI300 index was up 2.6 percent at 4,446.84 points by 0126 GMT, while the Shanghai Composite Index gained 2.3 percent to 4,289.77 points.

China CSI300 stock index futures for July rose 1.7 percent, to 4,319.2, still 127.64 points below the current value of the underlying index.

Hong Kong's Hang Seng index dropped 0.4 percent, to 26,560.13, while the Hong Kong China Enterprises Index lost 0.3 percent, to 13,044.09.

China's central bank at the weekend 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.

The last time the central bank simultaneously cut interest rates and reserve requirements was at the height of the global financial crisis in late 2008.

The latest move could also be aimed at comforting investors following a 20 percent plunge in the country's stock markets over the last two weeks, some analysts said. (Reporting by Pete Sweeney; Editing by Kim Coghill)