Shanghai-Shenzhen CSI 300 closes at four-month high, while Hong Kong slips on protest-fuelled economic woes
- China shares rise on investors’ hope for more fiscal and monetary measures
- Sharp drop in tourists in August adds to Hong Kong recession concerns
China benchmarks closed with solid gains Monday, as expectations of more fiscal and monetary support measures mount. But in Hong Kong, a slump in August visitor numbers on top of ongoing protests kept traders on edge.
The CSI 300, which tracks blue chips listed on the Shenzhen and Shanghai exchanges, rose 0.6 per cent to 3,972.95, which is the highest level in four months. The Shanghai Composite closed up 0.8 per cent at 3,024.74, the highest in two months.
The Hang Seng Index edged down 0.04 per cent, to 26,681.4, after seesawing between positive and negative territory throughout the day in a narrow 198-point range.
Alvin Cheung, associate director of Prudential Brokerage, said an expectation for more supportive fiscal and monetary measures that could be beneficial to both the economy and the equity market was behind the solid performances of China markets.
Last Friday, China’s central bank announced that it would cut the reserve requirement ratio (RRR) by 50 basis point for all banks in September, and an additional 100 basis points for selective city commercial banks in October and November. Together, these reductions will release 900 billion yuan liquidity into the economy.