INSUBCONTINENT EXCLUSIVE:
SHANGHAI: Chinese shares rebounded on Monday, after suffering heavy losses in the previous session, after the central bank governor pledged
more support for a slowing economy.
The Shanghai Composite index closed up 1.92 per cent at 3,026.99 points
The blue-chip CSI300 index was up 1.98 per cent, with its financial sector sub-index higher by 0.64 per cent
Gains were driven by statements from People's Bank of China (PBOC) Governor Yi Gang, who said on Sunday that the PBOC's "prudent"
monetary policy will emphasise counter-cyclical adjustments, using a phrase that implies the need to fight an economic slowdown
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
Yi said there is still some room for the PBOC to cut reserve requirement ratios, and said the bank will work on lowering risk premiums that
have kept lending rates for small firms relatively elevated
Weak data coming after recent gains means the market is still facing pressure, analysts at Dongguan Securities said in a note
"But during the two sessions (of parliament) period, policy will remain positive," they said
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
"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," analysts at Zheshang Securities said in a note
The analysts said that weakness in loan data indicates that companies have weak interest in expanding production or investment
Adding to hopes over talks to end a damaging trade war with the United States, Chinese Vice Commerce Minister Wang Shouwen said on the
weekend that China and the United States 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
The smaller Shenzhen index ended up 3.9 per cent and the start-up board ChiNext Composite index was higher by 4.431 per cent
Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.42 per cent, while Japan's Nikkei index closed up 0.47 per cent
At 07:19 GMT, the yuan was quoted at 6.7229 per United States dollar, 0.04 per cent weaker than the previous close of 6.72
The largest percentage gainers in the main Shanghai Composite index were China XD Electric Co Ltd, up 10.1 per cent, followed by Tianjin
Hi-Tech Development Co Ltd , gaining 10.1 per cent and Ningbo Zhoushan Port Co Ltd, up by 10.1 per cent
The largest per centage losers on the Shanghai index were Shanghai DZH Ltd down 10.02 per cent, followed by Eastern Communications Co Ltd
losing 9.99 per cent and Hualing Xingma Automobile Group Co Ltd down by 9.96 per cent
So far this year, the Shanghai stock index is up 21.4 per cent and the CSI300 has risen 23.9 per cent, while China's H-share index listed
in Hong Kong is up 11.3 per cent
Shanghai stocks have risen 2.93 per cent this month
About 42.62 billion shares were traded on the Shanghai exchange, roughly 145.8 per cent of the market's 30-day moving average of 29.24
The volume in the previous trading session was 57.79 billion
