Chinese stocks closed lower, but incentive measures curb losses

US, WASHINGTON (ORDO NEWS) — Chinese stocks closed lower on Friday amid continued concerns around the coronavirus, but losses were limited as Beijing promised more support to help the world’s second largest economy.

The People’s Bank of China on Friday lowered the interest rate on targeted medium-term loans (TMLF) following a cut in rates on other instruments to provide liquidity to the economy in recent weeks.

“The role of TMLF as a low-cost alternative to MLF is diminishing because there are already various measures to ensure cheaper financing,” said Francis Chung of Westpac in Singapore.

The Shanghai Composite index fell 1.06% to 2.808.53 points, while the blue chip index CSI300 sank 0.86% to 3.796.97 points.

The financial sector subindex fell 1.07%, the consumer goods sector added 0.24%, the real estate index fell 0.96%, and the health sector fell 1.57%.

The startup index ChiNext Composite fell by 1.27%.

Hong Kong’s Hang Seng Index fell 0.61% to 23.831.33 points, while China Enterprises Index fell 0.49% to 9.656.19 points.

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