Chinese stocks close down as COVID concerns outweigh support pledges

The blue-chip CSI300 index fell 0.8% to 4,134.90, while the Shanghai Composite Index lost 0.1% to 3,194.03 points. ** China will step up financial support for industries, firms and people affected by COVID-19 outbreaks, the central bank (PBOC) said on Monday.

Chinese stocks closed down on Tuesday, despite the authorities vowing to support the economy amid a COVID-19 outbreak, with investors watching whether tough pandemic controls might be relaxed. The blue-chip CSI300 index fell 0.8% to 4,134.90, while the Shanghai Composite Index lost 0.1% to 3,194.03 points.

** China will step up financial support for industries, firms and people affected by COVID-19 outbreaks, the central bank (PBOC) said on Monday. ** This came after data showed China's economy slowed in March as consumption, real estate and exports were hit hard, taking the shine off faster-than-expected first-quarter growth numbers.

** "But the real growth bottlenecks remain," Nomura said in a note. "Adjustments to China's zero-COVID strategy are key to a growth recovery in coming months." ** By mid-April, the PBOC had paid 600 billion yuan ($94.31 billion) in profits to the central government - equivalent to a 25-basis points cut in banks' reserve requirement ratios (RRR), the central bank said.

** This move followed a 25 basis points (bps) cut in the reserve requirement for all banks by the central bank, releasing about 530 billion yuan ($83.25 billion) in long-term liquidity, while analysts said room for further interest rate cuts may be limited. ** Healthcare firms and semiconductor stocks slipped 2.2% and 2.7%, respectively, while energy stocks gained 2.6% and infrastructure companies added 1.2%.

** China's state planner called for the implementation of policies to support the country's catering and retail sectors, as well as spending on new energy vehicles. ** Consumer staples edged down 0.2%, while new energy vehicle stocks ended lower 0.5%.

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