China stocks mixed on cenbank prudent monetary policy stance

  • 9/8/2021
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SHANGHAI, Sept 8 (Reuters) - China shares were mixed on Wednesday as central bank officials vowed to maintain prudent monetary policy, while state media said the country’s long-term economic policy remains unchanged. The CSI300 index fell 0.3% to 4,980.55 points at the end of the morning session, while the Shanghai Composite Index gained 0.1%, to 3,679.18 points. The Shanghai Composite Index hit its highest in six months on Tuesday. The Hang Seng index dropped 0.5% to 26,217.38 points. The Hong Kong China Enterprises Index lost 0.5% to 9,421.65. ** China’s central bank officials said liquidity supply and demand will remain basically balanced in coming months and China will maintain prudent monetary policy and not resort to flood-like stimulus. ** Based on the message, Nomura lowered the probability of a targeted reserve requirement ratio (RRR) cut in September-October to 50% from 70% previously. ** “The PBoC could opt to use some alternative low-profile and more targeted tools for supporting groups such as SMEs,” said Nomura in a note, citing small-and-medium enterprises. ** State media outlet People’s Daily said on Wednesday China’s long-term economic policy remains unchanged and regulations on its industries are to promote their healthy development. ** The consumer staples sub-index, the semiconductor sub-index and the machinery sub-index fell 1.4%, 1%, and 1.6%, respectively. ** Resource-related stocks jumped 2%. ** In Hong Kong, the tech sub-index dropped 0.9%, while the financials sub-index and the comsumer staples sub-index both went down 1%. ** China Evergrande Group rose 0.8% before falling more than 2% in morning trading, after Fitch Ratings cut the ratings of the indebted developer and two of its subsidiaries on Wednesday, the latest in a series of downgrades targeting the group. (Reporting by Shanghai Newsroom; editing by Uttaresh.V) Our Standards: The Thomson Reuters Trust Principles.

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