SHANGHAI: China’s blue-chip index and Hong Kong shares closed lower on Monday, as the central bank’s move to leave its benchmark interest rate unchanged amid rising domestic coronavirus cases disappointed investors.
Market participants are also awaiting supportive measures to materialize after China’s top policymaker pledged last week to support the domestic economy and financial markets.
The blue-chip CSI300 index fell 0.2% to 4,258.75. However, the Shanghai Composite Index gained 0.1% to 3,253.69 points.
The Hang Seng index fell 0.9% to 21,221.34, while the China Enterprises Index lost 1.7% to 7,244.48 points.
The one-year loan prime rate (LPR) was held at 3.70%, while the five-year LPR remained at 4.60%.
China’s sound economic fundamentals, pro-growth policies, and continuous moves to open up markets will make yuan assets more attractive to foreign investors, the official Securities Times said in a commentary on Monday.
“Many global investors’ faith in long-term investment in China is shaking,” said Dan Wang, chief economist at Hang Seng Bank China.
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