Chinese stocks rebounded as Fed delays rate hikes, easing concerns and boosting market sentiment.

From Google: 2024-09-19 21:10:59

China stocks rebounded as the Federal Reserve signaled a potential delay in raising interest rates, boosting hopes for easing measures. The CSI300 index rose 1.7% to 4,208.42, while the Shanghai Composite Index gained 1.5% to 3,517.03. This comes after recent market volatility due to concerns over tightening monetary policy. Investors welcomed the Fed’s cautious approach.

Investors reacted positively to the Fed’s comments, with Hong Kong’s Hang Seng Index gaining 1.4% to 25,925.34. The Fed’s decision to hold off on raising rates provided relief to global markets, including China. The central bank’s statement cited lingering risks from the pandemic and reaffirmed a patient approach to future rate hikes. Markets reacted accordingly.

The People’s Bank of China also injected 150 billion yuan ($23.55 billion) into the financial system on Wednesday, easing liquidity concerns among investors. This move followed a similar injection earlier in the week and aimed to stabilize markets after recent volatility. The injection helped support Chinese stocks and calm fears of a liquidity crunch.

The rebound in Chinese stocks was driven by expectations of further policy easing, as investors anticipate supportive measures from central banks. Economic data showing a slowdown in China’s GDP growth also fueled speculation of more stimulus. These factors contributed to the positive sentiment in the market, prompting a rebound in stock prices.



Read more at Google: China stocks rebound as Fed rate relief lifts easing hopes – Business Recorder