China stocks post modest gains after rate cut

SHANGHAI (Reuters) - China stocks closed modestly higher on Monday after the central bank cut interest rates for the sixth time since November to spur the cooling economy, but gains were capped by profit-taking, in particular in smaller, more speculative shares.

Benchmark indexes had jumped more than 1 percent in early trade after the central bank cut interest rates and banks' reserve ratios late on Friday, and also removed ceilings on deposit rates.

Both the CSI300 index of the largest listed companies in Shanghai and Shenzhen and the Shanghai Composite Index ended up 0.5 percent, to 3,589.26 points and 3,429.58 points, respectively.

Most traders and analysts had expected the central bank to ease policy further in coming months after third-quarter economic growth eased to the lowest level since the global financial crisis.

Among the most active stocks in Shanghai were Meiyan Jixiang, down 9.3 percent to 8.79 yuan; Guangxi Wuzhou Zhongheng Group, up 2.6 percent to 6.81 yuan and Shanghai Dazhong Public Utilities, up 3.3 percent to 9.38 yuan.

In Shenzhen, BOE Technology, down 0.7 percent to 3.08 yuan; XCMG Machinery, up 6.7 percent to 4.59 yuan and Suning Appliance, down 1.0 percent to 16.12 yuan were among the most actively traded.

Total volume of A shares traded in Shanghai was 36.4 billion shares, while Shenzhen volume was 39.1 billion shares.

(Reporting by the Shanghai Newsroom; Editing by Kim Coghill)