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Most China Stocks Increase after PBOC Rate Cut

Most Chinese stocks climbed after the central bank reduced its benchmark interest rate for a second time in three months to shore up economic growth.

Beijing Capital Development Co. and Poly Real Estate Group Co. led property companies higher. BYD Co. jumped 6.4 percent in Hong Kong and Beijing SDL Technology Co., a maker of environmental monitoring systems, rose by the 10 percent daily limit in Shenzhen after analysts said a popular documentary on smog in China may spur government policies to tackle pollution.

The Shanghai Composite Index fluctuated between gains and losses, with about two stocks rising for each one that fell at 10:10 a.m. local time. The PBOC’s decision to cut its benchmark lending rate by a quarter percentage point on Saturday came a day before a Chinese factory gauge signaled contraction in February. Most economists predict Premier Li Keqiang will announce a 2015 growth target of around 7 percent, down from 7.5 percent last year, when the National People’s Congress convenes its annual meeting this week.

Bloomberg [1]

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