Mainland Chinese blue chips were 0.68% higher, reversing earlier declines, after the People’s Bank of China said the new Securities, Fund, and Insurance Swap Facility would start operating that day
China stocks gained on Friday as the central bank officially launched a swap facility aimed at boosting the equity market, although shares elsewhere in Asia were mixed in the wake of data confirming a slowdown in the world’s second-biggest economy.
Mainland Chinese blue chips were 0.68% higher as of 0257 GMT, reversing earlier declines, after the People’s Bank of China (PBC) said the new Securities, Fund, and Insurance Swap Facility would start operating that day. The central bank also urged key financial institutions to swiftly implement policies to support the economy and capital markets.
China’s central bank governor also flagged more interest rate reductions in a speech to a financial forum.
Beijing unveiled the biggest stimulus since the pandemic late last month, but investors have been frustrated by the lack of details offered by Chinese authorities in subsequent briefings.
China’s economy rose 0.9% in the third quarter from the previous quarter, data showed Friday, marginally below expectations for a 1.0% increase. The previous quarter’s growth was revised lower to 0.5%.
The world’s second-biggest economy grew 4.6% year-on-year in July-September, slowing from 4.7% in the second quarter.
In a general sense, this is very backward looking data, according to Alvin Tan, head of Asia FX strategy at RBC Capital Markets.
It basically confirms that the economy has been decelerating, which is why there is this stimulus that was launched, he added. That’s the one that people are really focused on.
Hong Kong’s Hang Seng was 1.14% higher, getting an additional lift from technology shares following solid earnings a day earlier at Taiwanese chipmaker and Nvidia supplier TSMC. Taiwan’s equity benchmark jumped 2.62%.
Japan’s Nikkei gained 0.38%, helped by a weaker yen versus the dollar.
However, Australia’s benchmark dropped 0.89% and South Korea’s KOSPI slid 0.44%.
