Markets
21:14, 04-Jan-2019
China stocks rebound on RRR cut, trade optimism
Updated
20:19, 07-Jan-2019
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China's major stock indices bounced back from early losses and closed over two percent up Friday, as the government's decision to cut banks' reserve requirement ratios (RRRs) and optimism about China-U.S. trade talks helped boost the market.
The benchmark Shanghai Composite Index dived to the lowest points of 2,440.91 since November 2014 just as the market opened Friday, but finished 2.05 percent higher.
The Shenzhen Component Index declined nearly a percent to the lowest since March 2014, but ended with a 2.76-percent surge to 7,284.84 points.
The ChiNext Index, China's NASDAQ, closed up 2.52 percent at 1,245.16 points.
China will cut banks' RRRs, taxes and fees, Chinese Premier Li Keqiang said Friday at a meeting with the country's banking regulator. The central bank then announced the RRRs cut by 1 percentage point.
China and the U.S. will hold trade talks at vice-ministerial level in Beijing on January 7 and 8, the Ministry of Commerce said Friday. This will be the first in-person talks since Chinese President Xi Jinping and U.S. President Donald Trump agreed to a 90-day truce in the trade war last month.