China’s blue-chips closed down on Monday as financial and infrastructure shares retreated after China kept its benchmark lending rate unchanged, while property developers gained in late trade after reports that a big city lowered mortgage rates. The blue-chip CSI300 index fell 0.4% to 4,634.31, while the Shanghai Composite Index was unchanged at 3,490.61 points.
** China kept its benchmark lending rates for corporate and household loans unchanged at its February fixing on Monday, in line with market expectations. ** “The PBOC should have less urgency to ease further and take a time break in its rate-cut cycle before the National People Congress in March,” said Ken Cheung, Chief Asian FX Strategist at Mizuho Bank. “We believe that the downside risks are still dominating in the China economy and the PBOC’s rate-cut cycle is not yet over.”
** China’s four top banks, including Bank of China and Industrial and Commercial Bank of China <601398.SS, have lowered the mortgage rates for first homebuyers in the southern city of Guangzhou by 20 basis points, state media reported. ** Real estate developers reversed earlier losses after the news and closed up 0.7%.
** The CSI Financials Index lost 0.3%, and semiconductors declined 0.6%. Machinery stocks and infrastructure shares dropped roughly 0.8% each. ** The coal sub-index rose 2.8%. Chinese coking coal futures also jumped, as supply remained relatively low and demand was expected to recover further.
** The computer subindex went up 2.2%, and communications equipment added 1.6%.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)