China stocks down

China shares closed lower on Wednesday, as investor worries over an expected sharp drop in the country's first-quarter economic growth offset a brief boost from a widely expected cut to medium-term lending rates.

At the close, the Shanghai Composite index was down 0.57% at 2,811.174, extending losses of 0.15% by midday. The blue-chip CSI300 index was down 0.74%, with its financial sector sub-index lower by 0.79%, the consumer staples sector down 0.73%, the real estate index down 1.63% and the healthcare sub-index down 0.84%.

The smaller Shenzhen index ended down 0.53% and the start-up board ChiNext Composite index was weaker by 0.4%. So far this week, the market capitalisation of the Shanghai stock index has risen by 1.10% to 32.29 trillion yuan.

China's central bank on Wednesday cut the interest rate on its medium-term lending facility (MLF) for financial institutions by 20 basis points to 2.95%, a record low, in an attempt to combat the economic fallout from the coronavirus health crisis. More easing is widely expected to help struggling companies get back on their feet.