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China Market surges on policy boosts hopes

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Headline indices of the Mainland equity market closed sharp higher on Monday, 11 March 2019, as investors chased for value buying on hopes of policy boosts after weaker than expected Chinese loan and money supply data. At closing bell, the benchmark Shanghai Composite Index added 1.92%, or 57.13 points, to 3,026.99. The Shenzhen Composite Index, which tracks stocks on China's second exchange, rose 3.9%, or 62.54 points, to 1,667.82.

The blue-chip CSI300 index climbed 2%, or 72.38 points, to 3,729.96.

Weaker than expected Chinese loan and money supply data raised expectations of further action to spur the slowing economy. of (PBOC) pledged to further support the slowing economy by spurring loans and lowering borrowing costs. of (PBOC) said on Sunday that there is still some room for the PBOC to cut reserve requirement ratios, and said the will work on lowering risk premiums that have kept lending rates for small firms relatively elevated. Considering that the main external central banks are all turning toward loosening, and that domestic credit growth still requires government support, monetary policy will continue to be relatively loose

China's factory-gate inflation in February stayed flat from a month earlier, while gains in consumer prices slipped to the lowest level in more than a year as muted price pressures point to lacklustre demand in the world's second-largest economy.

Chinese banks made 885.8 billion yuan ($131.77 billion) in net new yuan loans in February, down sharply from a record 3.23 trillion yuan in January, though the drop was likely due to seasonal factors.

Adding to hopes over talks to end a damaging trade war with the United States, Chinese said on the weekend that China and the are still working day and night to achieve a trade deal that matches the interests of both sides and the hopes of the world, including eliminating tit-for-tat tariffs.

Shares of property developers closed lower after is "steadily advancing" and will be submitted for review when conditions are right. Top developer ended down 0.9% after earlier falling as much as 3.8%.

CURRENCY NEWS: China's yuan was quoted at 6.7225 per U. S. dollar, 0.04% weaker than the previous close of 6.72.

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

First Published: Mon, March 11 2019. 13:27 IST