This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-34059482
The article has changed 12 times. There is an RSS feed of changes available.
Version 0 | Version 1 |
---|---|
China shares fail to lift on the central bank's rate cut | |
(about 1 hour later) | |
Chinese shares continued to lose ground despite the central bank's latest effort to reassure traders. | |
The mainland's benchmark Shanghai Composite was down 1% in early trading to 2,934.27 points. | |
The index had already fallen about 16% this week, sending shockwaves through global markets. | |
The dramatic losses and volatility in China has shattered investor confidence and led to sharp falls in Asia and the US over the past days. | |
On Tuesday, China's central bank cut its key lending rate by 0.25 percentage points to 4.6% in an effort to calm stock markets after the past days' turmoil. | |
It is the fifth interest rate cut by the People's Bank of China since November last year. | |
Hong Kong's Hang Seng index fared slightly better than the mainland, trading flat at 21,401.73 points. | |
China economy woes | China economy woes |
Chinese shares had experienced a year-long rally - mainly fuelled by investors borrowing money to buy shares - which came to an end in June. | Chinese shares had experienced a year-long rally - mainly fuelled by investors borrowing money to buy shares - which came to an end in June. |
The Chinese government then intervened in financial markets to try to maintain momentum in the economy. | |
Two weeks ago the central bank devalued the currency, the yuan, to boost exports - this raised fresh concerns that China's economy could be in worse shape than previously thought. | Two weeks ago the central bank devalued the currency, the yuan, to boost exports - this raised fresh concerns that China's economy could be in worse shape than previously thought. |
Given China's central role in world trade, a slowdown in the world's second largest economy would likely reverberate around the globe. | Given China's central role in world trade, a slowdown in the world's second largest economy would likely reverberate around the globe. |
Read more: The six Cs of the China stock slump | |
The stocks fall in facial expressions | |
Cautious optimism elsewhere | |
Elsewhere in Asia, the region's largest index, Japan's Nikkei 225 edged higher on Wednesday, up by 0.9% to 17,946.41. | |
The Nikkei's gains come after a painful week for the Tokyo index which had shed more than 8% in the past two sessions. | |
South Korea's Kospi index was also in positive territory, trading 1% higher at 1,865.54 points while in Australia, the S&P/ASX 200 failed to make any gains and traded flat at 5,132.60. | |
Overnight, European and US markets saw another session of volatile trading. | |
Read more from our experts: | Read more from our experts: |
Duncan Weldon: What next for the global economy after China market woes? | |
Andrew Walker: How the China share slump affects the rest of the world | Andrew Walker: How the China share slump affects the rest of the world |
Karishma Vaswani: China counts cost of Black Monday | Karishma Vaswani: China counts cost of Black Monday |
Robert Peston: Will China’s slowdown make us poorer? | Robert Peston: Will China’s slowdown make us poorer? |
Duncan Weldon: China share falls - why it's not 2008 | Duncan Weldon: China share falls - why it's not 2008 |