Chinese shares opened slightly lower on Friday with the key Shanghai index 0.84 percent lower than the previous closing.
The benchmark Shanghai Composite Index fell 16.19 points, or 0.84 percent, to 1901.68 at the opening. The smaller Shenzhen index fell 77.14 points, or 1.15 percent, to open at 6606.10 points.
On Thursday, Chinese equities closed 1.05 percent higher in response to an unusually large interest rate cut, but they gave up some gains due to profit-taking as well as concerns over the economic slowdown and sagging corporate earnings.
On Wednesday afternoon, the People's Bank of China (PBOC, the central bank) said it would cut the benchmark one-year yuan lending rate to 5.58 percent from 6.66 percent and the one-year yuan deposit rate to 2.52 percent from 3.60 percent.
It was the fourth interest rate cut since mid-September. It also was the largest cut since October 1997, when the PBOC slashed the one-year rate by 1.44 percentage points to support growth amid the Asian financial crisis.
The PBOC also said as of Dec. 5, it would lower the reserve requirement ratio by 1 percentage point at large banks and 2 percentage points at other banks.
Large lenders are Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications and Postal Savings Bank of China
Source:Xinhua
|
Comment
Tell A Friend
Print Format
Save Article