China Market rebounds 0.2%

Mainland China share market finished session higher on Tuesday, 20 September 2022, snapping four days of losing streak, as risk sentiment underpinned after the People's Bank of China kept its benchmark lending rates unchanged at a monthly fixing in addition to Monday's cut in repo rate and injection of more liquidity into the economy to shore up growth. Also, investors sentiment boosted up on expectation that top consumer China would ease COVID-19 curbs further.

However, market gains capped amid caution ahead of the U.S. Federal Reserve meeting later in the day. The U.S. central bank is expected to hike rates aggressively in an effort to curb inflation.

 

At close of trade, the benchmark Shanghai Composite Index added 0.22%, or 6.80 points, to 3,122.41. The Shenzhen Composite Index, which tracks stocks on China's second exchange, rose 1.07%, or 21.30 points, to 2,011.66. The blue-chip CSI300 index increased 0.12%, or 4.84 points, to 3,932.84.

ECONOMIC NEWS: The People's Bank of China (PBoC) held interest rates on Tuesday, as it seeks to strike a balance between loosening monetary policy and curbing further losses in an already weakened yuan. The bank maintained its one-year loan prime rate, which dictates the interest rates the country's biggest banks charge their customers, at 3.65%, while the five-year rate, which factors into mortgages, was held at 4.3%. The move comes after the central bank unexpectedly cut lending rates in August, in a bid to shore up economic growth that has been severely impacted by COVID related lockdown this year.

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