China Stocks Slip: Short-term Pressure Amid U.S. Rate Cut Ripple
China stocks closed lower, reversing intraday gains that hit a decade-long high due to investor profit-taking and diminishing rate cut optimism. The Shanghai Composite and CSI300 indexes both fell. U.S. rate cut anticipations were realized, leaving China's monetary policy unchanged. Analysts remain optimistic, citing supportive policies and potential stock upsides.
China stocks concluded Thursday's trading lower, reversing earlier gains that propelled the benchmark to a 10-year peak as investors hurried to secure profits amid diminishing optimism of U.S. rate cuts.
The Shanghai Composite index dipped 1.15% to 3,831.66 after nearly reaching 3,899.96, its highest since August 2015, with the CSI300 index following at a 1.16% decline.
Despite the Federal Reserve cutting rates by 25 basis points, China's central bank left rates unchanged, not rushing towards monetary easing. Short-term pressure is anticipated as markets had already built on U.S. rate cut expectations. Analysts, however, maintain a bullish outlook on Chinese equities driven by supportive policies and projected gains.
Advertisement
Google News