China Stocks Rise as PBOC Injects Funds; Hong Kong Edges up

Asian stocks
  • China Stocks Rise as PBOC Injects Funds; Hong Kong Edges up

China’s main stock indexes extended gains on Friday morning, as the People’s Bank of China move to inject funds amid liquidity worries offered some solace.

The CSI300 index rose 0.5 percent, to 3,373.49 points at the end of the morning session, and the Shanghai Composite Index gained 0.4 percent, to 3,073.48 points.

Both indexes remained on track for a fifth straight week of losses amid persisting regulatory worries. China’s central bank injected fresh funds through a medium-term lending facility on Friday while keeping a tight rein on short-term funding. This appeared to be a further effort to dampen speculative investment while the economy remains adequately funded.

The central bank also issued a notice to banks to inquire about interest rates on inter-bank borrowings, loans and bill markets, the official Shanghai Securities News reported a day earlier.

Tight liquidity conditions have been a major concern for investors amid a crackdown on banks’ risky financial activities with a focus on shadow banking.

At the early hours, financial plays led gains, in particular bank stocks, whose index rallied two percent, positioning it for the best day since mid-August.

About the Author

Samed Olukoya
Samed Olukoya is the CEO/Founder of investorsking.com, a digital business media, with over 10 years' experience as a foreign exchange research analyst and trader. A graduate of University of East London, U.K. and a vivid financial markets analyst.

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