A sell-off in technology stocks pushed mainland Chinese equities to their lowest level in more than a year, even as Beijing stepped up support for the economy with a key interest rate cut. At the same time, Chinese government bonds attracted fresh interest as US Treasury yields climbed to a new high.
Here are some figures that have captured market attention this week.
China’s CSI 300 Index hits 13-month low
Mainland China’s CSI 300 Index dropped 2.2 per cent on Monday to its lowest level since August 21 last year, while the technology-focused Star Market 50 index tumbled 4.1 per cent. A 31 per cent plunge in the Star Market 50 during the third quarter contributed to a 12 per cent decline in the CSI 300.
Mainland Chinese and Hong Kong stocks could face a bumpy road in the fourth quarter amid underwhelming stimulus measures, concerns over further interest rate increases and changing sentiment towards artificial intelligence-related investments, analysts said.
Key lending rate cut by 0.25 percentage points
China’s central bank cut the one-year pledged supplementary lending rate to 1.5 per cent from 1.75 per cent on Tuesday, aiming to encourage policy banks to provide funding for projects aligned with national priorities.
The move came alongside a mortgage interest subsidy programme for first-time homebuyers, offering an annualised interest subsidy of 1 percentage point for up to five years for loans with principals of up to 1 million yuan (US$149,000).
