May 11, 2017 / 7:13 AM / 10 months ago

China stocks end higher after said to inject funds

SHANGHAI, May 11 (Reuters) - China stocks reversed earlier losses to end higher on Thursday, with sentiment helped by expectations that the central bank will inject funds via its medium-term lending facility on Friday.

The blue-chip CSI300 index rose 0.6 percent to 3,356.65 points, while the Shanghai Composite Index rose 0.3 percent to 3,061.50 points.

The People’s Bank of China (PBOC) queried some commercial banks on their demand for medium-term lending facility (MLF) loans and is expected to inject the funds through the MLF on Friday.

It was not known how much it would inject, via which tenors or whether rates would remain unchanged, but the expectations of a boost to liquidity encouraged investors.

Investor sentiment has laboured under tighter liquidity conditions and regulatory measures, including a crackdown on speculation involving curbs on lending, analysts said.

Real estate and infrastructure stocks led the advance on Thursday.

However, the tech-heavy start-up board ChiNext still hovered around a 27-month low.

“Compared with other stocks, valuations for listed start-up companies are still much higher, and their growth as a whole also slowed in the first quarter,” said Xiao Shijun, an analyst with Guodu Securities, adding that their growth through mergers and acquisitions was hit hard by tougher financial regulations. (Reporting by Luoyan Liu and John Ruwitch; Editing by Simon Cameron-Moore)

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