MW Chinese equities jump as central bank rolls out support for the stock market
By Steve Goldstein
Chinese stocks rallied Friday for the first time in four days as the central bank rolled out promised support for the stock market.
China's CSI 300 XX:000300 jumped 3.6% to 3925.23, and the index is now 22% above levels from late September when the Chinese government first announced a stimulus plan.
The Hang Seng HK:HSI also closed up 3.6%. Chipmaker SMIC (HK:981) was among the companies that rallied, as several microchip names jumped in Shanghai trade.
Meituan (HK:3690), Lenovo (HK:992) and BYD (HK:1211) shares also rallied.
The People's Bank of China on Friday kicked off two plans that will pump up to 800 billion yuan ($113 billion) into the stock market. Already 20 securities and fund companies have been approved to obtain liquidity from the central bank to buy stocks, the central bank said Friday.
Another 21 financial institutions are eligible for a facility to issue low-interest loans to eligible listed companies and major shareholders for stock repurchases and increases of holdings, which they can then refinance at a 1.75% annual interest rate with state institutions.
Chinese President Xi Jinping also delivered a speech highlighting the importance of science and technology companies.
The rally came on a day when the country reported its third-quarter gross domestic product slowed to a 4.6% rate in the third quarter from 4.7% in the second quarter.
-Steve Goldstein
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(END) Dow Jones Newswires
October 18, 2024 04:35 ET (08:35 GMT)
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