Mainland China share market.finished session lower on Thursday, 15 September 2022, after the People’s Bank paused its monetary easing measures amid increased pressure from a hawkish U.S. Federal Reserve.
At close of trade, the benchmark Shangh Composite Index declined 1.16 per cent, or 37.62 points, to 3,199.92. The Shenzhen Composite Index, which tracks stocks on China’s second exchange, dropped 2.34 per cent, or 49.11 poits, to 2,051.79.
The blue-chip CS1300 index decreased by 0.94 per cent, or 38.24 points, to 4,027.12. The People’s Bank of China (PBoC) maintained its medium-term policy rate on Thursday after steadily lowering lending rates earlier this year
. The People’s Bank of China kept the rate for one-year medium-term lending facility loans (MLE) unchanged at 2.75 per cent, while partially rolling over some maturing loans.
The move was likely driven by increased depreciation in the yuan, which plummeted to two-year lows in recent weeks. Today’s move indicates that the PBoC is looking to find a balance between shoring up economic growth and allowi further depreciation in the yuan, which is also facing headwinds from rising U.S. interest rates.
Five of China’s largest banks cut personal deposit rat from Thursday, according to information available on the lenders’ mobile apps, a move that could ease the pressure on their margins after recent lending rate cuts to revive the economy. Shares of Chinese property developers rallied on hopes that cities in the mainland will roll out more relaxation measures to boost the embattled sector.