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Chinese shares end mixed as investors await rate cut

(Xinhua)
Updated: 2008-11-21 18:52

BEIJING - Chinese shares ended mixed on Friday amid a mostly positive day for regional markets.

The benchmark Shanghai Composite Index fell 0.72 percent to 1,969 points, while the Shenzhen Component Index rose 0.22 percent to 6,711 points.

Related readings:  Chinese shares open 2.7 pct lower after Wall Street sell-off  Shares end 1.67% down with investor confidence restoring  Chinese shares close above 2,000 points after 6% gain  Chinese shares rebound 6% on Wall Street rally

Combined turnover eased to 121.445 billion yuan (US$17.34 billion) from the previous day's 127.427 yuan.

Losses outnumbered gains by 608 to 240 in Shanghai and 557 to 163 in Shenzhen.

The Shanghai index opened lower, tracking a sharp overnight decline on Wall Street, but rebounded in the afternoon as property stocks rose. It weakened in the final half hour or so of trade.

The volatility indicated that investor sentiment was boosted by rises in regional markets and expectation of a further interest rate cut over the weekend, said analysts.

Economists who had attended a symposium organized by a think tank of the State Council (cabinet) agreed that fast-declining inflation offered ample scope for further loosening of monetary policy. They forecast the central bank would probably make further interest rate and bank reserve ratio cuts before the end of the month.

Property and building material sectors gained broadly. China Vanke rose 4.37 percent to 6.92 yuan. Poly Real Estate Group Co. was up 6.46 percent to 17.97 yuan. Hebei Taihang Cement Co. surged 9.96 percent to 6.07 yuan. Sichuan Golden Summit Co. soared by nearly 10 percent to 5.73 yuan.

Donghai Securities wrote in a note that the market's volatility would continue, regardless of rate cuts.