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China Market rises on more stimulus hopes

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The Mainland China equity market closed higher on Tuesday, 19 November 2019, as investors chased for value buying across the board on rising optimism that a limited, phase-one trade deal will soon be struck and on hopes of more stimulus measures to shore up the slowing economy after an interbank lending rate cut. At closing bell, the benchmark Shanghai Composite Index inclined 0.85%, or 24.79 points, to 2,933.99. The Shenzhen Composite Index, which tracks stocks on China's second exchange, was up 1.83%, or 29.61 points, to 1,646.80. The blue-chip CSI300 index added 1%, or 39.11 points, to 3,947.04.

The People's Bank of China on Monday lowered the interest rate on its regular reverse repurchase open market operations for the first time since October 2015, injecting 180 billion yuan liquidity into the market in an effort to boost market confidence and buoy slowing growth. The seven-day reverse repurchase rate was cut to 2.50% from 2.55%. That has been taken by the market to expect more supportive monetary measures will follow in the near term.

Investors were also optimistic about the progress of US- China trade talks after an extension for U. S. companies to do business with Huawei and report that the two sides had "constructive talks" on trade on Saturday.

Chinese Vice Premier Liu He, the country's top trade negotiator, held a phone conversation with U. S. Trade Rep. Robert Lighthizer and Treasury Secretary Steven Mnuchin on Saturday, describing the discussions as constructive. That came after White House economic advisor Larry Kudlow said late last week the two economic powerhouses were getting close to a deal. The Trump administration on Monday issued a 90-day extension of a license allowing U. S. companies to continue doing business with Chinese telecom giant Huawei Technologies Co.

Mobile gaming-related stocks were higher, with Wuhu Sanqi Interactive Entertainment Network Tech (002555 CH), Perfect World (002624 CH) and Hangzhou Shunwang Tech (300113 CH), all jumped to the 10% daily limit.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, November 19 2019. 16:42 IST
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