BEIJING: Chinese stocks moved higher by mid-morning on Monday in volatile conditions as an interest rate cut by the central bank failed to impress investors who are becoming increasingly worried that the recent rally has been overdone.
Money rates eased to a four-year low while the yuan steadied after the People’s Bank of China said on Sunday it was lowering its benchmark one-year lending and deposit rates by 25 basis points, the third cut in six months, to help support an economy headed for its slowest growth in a quarter of a century.
As of 0245 GMT, the CSI300 index of the largest listed companies in Shanghai and Shenzhen was up 0.7 percent, while the Shanghai Composite Index rose 1 percent.
Trading was volatile with both indices shuffling between positive and negative territory.
“The timing of the rate cut is well within expectations while the depth of the cut is smaller than many had expected,” said Zhang Chen, analyst at Shanghai-based hedge fund manager Hongyi Investment.
