Shanghai shares rise as China cenbank boosts short-term cash

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SHANGHAI — Shanghai’s main share index rose on Wednesday as China’s central bank boosted short-term funding to ease worries over tightening liquidity amid a faltering recovery, but losses in financial, tech and real estate firms kept China’s blue-chip index lower.

At the midday break, the Shanghai Composite index was up 0. 34% at 3,526. 49 points. China’s central bank offered 50 billion yuan ($7. 72 billion) through seven-day reverse repos into the banking system, bigger than daily injections in recent months, in what traders saw as a bid to support liquidity and lift market sentiment. China’s blue-chip CSI300 index was down 0. 11%, with its financial sector sub-index lower by 1. 25%, the real estate index down 3. 52% and an info tech sub-index down 1.02%. Continuing financial risks in real estate that investors worry could be more serious, China Evergrande Group, a supplier of debt-laden developers, stated that Evergrande had not paid some past due bills. Evergrande shares fell 1. 79% by midday in Hong Kong. They have fallen nearly 85% since July last year. The Chinese H-shares that are listed in Hong Kong have fallen 0. 56% to 9,047.6, while the Hang Seng Index was down 0. 36% at 25,634.38. After Tuesday’s more than 7 percent gain, the Hang Seng Tech index fell 0.1%. The smaller Shenzhen Index was 0. 07%, the start-up board ChiNext Composite index was weaker by 0. 27% and Shanghai’s tech-focused STAR50 index was down 2.37% . The MSCI Asia ex-Japan stock Index was 0. 07%, while Japan’s Nikkei index was down 0.08%. The yuan was quoted as 6. 4775 per U.S. dollar, 0. 11% weaker than the previous close of 6.4705. ($1 = 6. 4773 Chinese yuan ) (Reporting by Andrew Galbraith; Editing by Subhranshu Sahu)

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https://financialpost.com/pmn/business-pmn/shanghai-shares-rise-as-china-cenbank-boosts-short-term-cash, Financial Post
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