China stocks jump, property shares rally after rate cut
SHANGHAI (Reuters) – Chinese stocks jumped about 3 percent in volatile trading on Monday, led by property and infrastructure shares, after the central bank cut interest rates for the third time in six months to shore up the world’s second biggest economy.
While the reduction in benchmark lending and deposit rates by the People’s Bank of China over the weekend came as no major surprise, the move gave investors an excuse to pick up stock after the market slumped to its biggest decline in nearly 5 years last week.
"We still stick to our view that the market is in an upward trend, despite increasing volatility," said Li Haoshu, strategist at Chuangcai Securities Co.
The CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 2.9 percent, to 4,690.53, while the Shanghai Composite Index gained 3.05 percent, to 4,333.58 points.
Real estate and infrastructure stocks gained as investors bet the sector would benefit from lower borrowing costs.
The start-up board ChiNext surged 5.6 percent to a fresh record, spurred by hopes the tech-heavy index would benefit from Beijing’s economic restructuring efforts.