BEIJING: Chinese stocks climbed for a third day after the central bank reduced its benchmark interest rate for a second time in three months to shore up economic growth.
A gauge of materials jumped the most among 10 industry groups on the CSI 300 index as Inner Mongolia Junzheng Energy & Chemical Industry Co. rose by the 10 percent daily limit. Poly Real Estate Group Co. led property companies higher. BYD Co., an electric carmaker, soared 4.1 percent in Hong Kong while Beijing SDL Technology Co., a maker of environmental monitoring systems, reached a record in Shenzhen on speculation a popular documentary on smog may spur policies to tackle pollution.
The Shanghai Composite Index advanced 0.3 percent to 3,319.92, with about two stocks rising for each one that fell at the 11:30 a.m. break. The PBOC’s decision to cut its benchmark lending rate by a quarter percentage point on Saturday came a day before an official Chinese factory gauge signaled contraction in February. Most economists predict Premier Li Keqiang will announce a 2015 growth target of around 7 percent, down from 7.5 percent last year, when the National People’s Congress convenes its annual meeting this week.
“Investors are constructive in the near term,” with the cut being positive for banks, insurers and developers, said Audrey Goh, a Standard Chartered Plc strategist in Singapore. “I wouldn’t be surprised to see further cuts in reserve ratios or interest rates. The equity market is well supported. The Chinese authorities want to keep growth stable, while undertaking reforms.”
