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China stocks rise on fewer virus deaths, stimulus hopes

The blue-chip CSI300 index finished up 0.3 per cent at 4,084.88 points.

Reuters|
Last Updated: Feb 27, 2020, 01.29 PM IST
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China
China's central bank said on Thursday that it will ensure ample liquidity through targeted reserve requirement ratio (RRR) cuts in appropriate time.
Chinese shares rose slightly on Thursday as the country reported fewer deaths due to the coronavirus and signalled more support to underpin the domestic economy, although increasing worries over the global contagion of the virus kept gains in check. The benchmark Shanghai Composite index ended 0.1 per cent higher at 2,991.33 points and the blue-chip CSI300 index finished up 0.3 per cent at 4,084.88 points.

The economic recovery is accelerating but the coronavirus outbreak situation in the epicentre of Hubei province and its capital Wuhan is still dire, the ruling Communist Party's Politburo said on Wednesday, according to a state television report.

China's central bank said on Thursday that it will ensure ample liquidity through targeted reserve requirement ratio (RRR) cuts in appropriate time.

The central bank has taken steps to support the economy, including reducing interest rates and flushing the market with liquidity. It has also said it will provide special funds for banks to lend to businesses.

China's policy support could exceed market expectations as the country needs to grow at a faster pace in the second half to achieve decent full-year growth after the virus outbreak in the first half, according to a Vanho Securities report.

It is expected that Beijing will take more proactive countercyclical policies and the environment of monetary loosening will continue, the brokerage added.

Mainland China reported 433 new cases of virus infections on Wednesday, the National Health Commission said on Thursday, up from 406 on the previous day.

The number of new deaths stood at 29, the lowest daily rate since Jan. 28 and down from 52 on the previous day. The outbreak has now killed a total of 2,744 people.

Governments have ramped up measures to battle a global pandemic as the number of virus infections outside China, the source of the outbreak, for the first time surpassed those appearing inside the country.

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