Chinese Shares Rebound as Central Bank Seeks to Maintain Liquidity Shida Shinghwa Advanced Material Jumps 7%

MT Newswires Live
Sep 05

Chinese shares ended their three-day losing streak on Friday as the country's central bank moves to Maintain the national banking system's market liquidity via a 1-trillion-yuan outright reverse repo operation.

The Shanghai Composite Index, the main gauge of Chinese stocks, rose 1.2% to 3,812.51. The Shenzhen Component Index jumped 3.9% to 12,590.56.

The operation, which will have a three 91-day tenor, will be conducted using a fixed-quantity, interest-rate-bidding and multiple-price-bidding method.

The People's Bank of China's move underscores the continued supportive monetary policy stance and stabilizes market expectations, said Wang Qing, chief macro analyst at Golden Credit Rating.

In company news, Shida Shinghwa Advanced Material (SHA:603026) subsidiary Shenghua Guohong signed an investment cooperation agreement with Tengzhou Tianshui Biotechnology to establish a joint venture. Shares of the battery manufacturer jumped 7% Friday.

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