SHANGHAI: China stocks posted modest gains on Monday after the central bank cut interest rates over the weekend, with some investors expressing disappointment that it didn’t cut rates more deeply.
The People’s Bank of China cut interest rates for the second time in just over three months late on Saturday as the government steps up efforts to support the slowing economy amid the mounting threat of deflation.
While the previous rate cut in late November triggered a 26 percent surge in Chinese shares over the following month, investors appeared less excited this time around. Aggressive policy easing had been expected this year after the economy recorded its slowest growth in 24 years in 2014.
The CSI300 index ended the morning up 0.5 per cent at 3,589.97 points, while the Shanghai Composite Index edged up 0.3 per cent to 3,319.08, having at one point crossed into negative territory.
“It’s not a surprise,” said Wu Kan, head of equity trading at investment firm Shanshan Finance in Shanghai. “It’s a slow bull (market) now, not the kind of crazy bull we saw last year.”
The Hang Seng index also moved sideways for the most part, adding only 0.3 percent to 24,885.35 points, while the Hong Kong China Enterprises Index gained 0.6 percent.
