China stocks rebound on policy easing hopes

Mainland China share market closed sharply higher on Tuesday, 03 February 2015, snapping five sessions of falling streak, as investors chased for bottom hunting across the board on expectations of further monetary easing. The Shanghai Composite ended the day up 2.5% at 3204.91, recovering some of the 7.5% it lost over the past five sessions.

Mainland market responded positively to an injection of cash from the central bank and growing expectations of a further round of monetary easing. The People's Bank of China offered 35 billion yuan worth of seven-day reverse repurchase agreements, a short-term loan to commercial lenders, and 55 billion yuan of 28-day reverse repos on Tuesday. Market pundits were expecting a cut in the reserve requirement ratio for banks. There was also discussion of an interest rate cut.

Powered by Capital Market - Live News