Shanghai Stock Exchange records minor rise post central bank measures

The Shanghai Stock Exchange opened Wednesday with an upward trend that was moderated after the first few minutes, and within half an hour went up 0.20 percent after two days of high losses followed by emergency measures by the central People’s Bank of China.

The markets of China and Hong Kong continue to be volatile, rapidly interchanging between profit and loss albeit in modest percentages.

After half an hour of operations, the Shanghai general index, China’s principal stock market, rose just 5.87 points to 2,970.84 although right at the start of the session it had managed to recover momentarily the level of 3,000 integers that it lost Tuesday for the first time since December 2014.

After a fall of 8.49 percent Monday and 7.63 percent Tuesday, the general index of Shanghai has benefited from the interest rate cut (0.25 percentage points) and the reduction of the cash reserve ratio (0.50 points) that China’s central bank approved Tuesday after markets closed.

Meanwhile, the Shenzhen stock market, the second largest in the country, also opened with slight increases but shortly entered into loss and half an hour after the session started it went down by 1.33 percent.

An opposite movement was registered in the Hong Kong stock exchange, which technically is not Chinese but is connected partially to the Shanghai exchange.

Initially the Hang Seng index opened with losses but registered a slight increase of 0.15 percent (31.84 points) to stand at 21,436.8 integers.