China's blue-chip shares end higher on policy rate cuts

01/20/2022 | 02:38am

SHANGHAI, Jan 20 (Reuters) - China's blue-chip stocks closed higher on Thursday after a set of key policy rates and lending benchmarks were cut to prop up a slowing economy, with investors pinning hopes on further easing in policies by Beijing.

The CSI300 index ended 0.9% higher at 4,823.51, while the Shanghai Composite Index edged down 0.1% to 3,555.06 points.

** The one-year loan prime rate (LPR) was lowered by 10 basis points, and the five-year LPR was reduced by 5 basis points — the first reduction since April 2020.

** The LPR cuts were expected after official comments called for more monetary easing to prop up the broad economy.

** The CSI300 banks index rose 2.2%, while consumer staples added 1.8%.

** Real estate developers pared earlier gains in afternoon trade and ended down 0.5%. Reuters reported China is drafting nationwide rules to make it easier for developers to access funds from sales still held in escrow accounts, in its move to ease a severe cash crunch in the sector.

** Chipmakers retreated 1.2%, as China's industry ministry projected tight supplies of semiconductors to continue over a relatively long period of time.

** The Shanghai Stock Exchange (SSE) said it has asked companies listed on the Nasdaq-style STAR Market to disclose environmental, social and governance (ESG)-related information in their annual reports. (Reporting by Shanghai Newsroom; editing by Uttaresh.V)

© Reuters 2022
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