China Stocks Rebound on Stimulus Measures

The benchmark Shanghai Composite Index opened 1.73% higher Thursday following recent stimulus measures to bolster the economy after sharp stock plunges in previous days.

The index was still below the symbolic 3,000-point mark, at 2,978.03.

The Shenzhen Component Index opened 1.78% higher while the ChiNext Index the ChiNext Index, which tracks tech and other growth enterprises, opened 1.84% higher.

The People’s Bank of China on Tuesday evening cut its benchmark, one-year lending rate by 0.25 percentage points to 4.6%, and the benchmark deposit rate by a similar margin to 1.75%.

It also lowered the reserves that banks must hold, for the second time in two months, by 50 basis points to 18% for most big banks effective September 6.

The bank announced the measures after the Shanghai index closed down 7.6% on Tuesday following the nearly 9% loss on Monday. The index closed down 1.27% on Wednesday.

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