Chinese stocks jumped after Beijing signalled it was likely to ramp up stimulus measures as authorities seek to cushion the economic blow from the coronavirus outbreak.
The CSI 300 of Shanghai- and Shenzhen-listed shares rose 2 per cent on Monday after the People’s Bank of China cut interest rates on Rmb200bn ($28.6bn) of loans offered via its medium-term lending facility by 10 basis points. The MLF is key a rate for interbank lending.
The benchmark has rallied since it suffered its biggest one-day sell off in more than four years in early February, when investors jettisoned stocks due to growing fears over the deadly epidemic. The CSI 300 index is up about 11 per cent since then, while the yields on 10-year Chinese government bonds have fallen to multiyear lows.