New energy, machinery stocks lift China shares on policy easing boost

China stocks closed up on Monday, led by new energy and machinery shares, after the country's central bank cut a slew of short- and medium-term interest rates to bolster economic growth. ** China's real estate sector will likely see "significant easing" in the policies that govern it, BNP Paribas Asset Management said. ** The machinery sub-index, semiconductors and non-ferrous metal added between 1.5% and 1.7%.

China stocks closed up on Monday, led by new energy and machinery shares, after the country's central bank cut a slew of short- and medium-term interest rates to bolster economic growth. The blue-chip CSI300 index rose 0.2% to end at 4,786.74, while the Shanghai Composite Index gained 0.04% to 3,524.11.

** China's central bank lowered the funding cost of 14-day reverse repos when injecting 150 billion yuan ($23.68 billion) into the banking system, to "maintain stable liquidity ahead of the Lunar New Year." ** Traders said the rate cut was expected as it came after a slew of key short- and medium-term rate reductions last week.

** China will be able to achieve economic growth of around 5.5% in 2022, an adviser to the government's cabinet said on Friday, making a rosier prediction than markets expect as recent data have pointed to slowing momentum. ** New energy stocks surged 2.7%, with the photovoltaic industry and new energy vehicles up 3.2% and 2.1%, respectively.

** Real estate developers gained 1.2%. China Evergrande Group named a state firm official to its board, while two of its peers sold some assets to state-owned entities, amid hopes of growing government intervention to aid the crisis-hit property sector. ** China's real estate sector will likely see "significant easing" in the policies that govern it, BNP Paribas Asset Management said.

** The machinery sub-index, semiconductors and non-ferrous metal added between 1.5% and 1.7%.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)