China Stocks Edge Higher as Banks Weigh Cut to Mortgage Rates

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(Bloomberg) -- A sense of stability seems to be returning to Chinese stocks after weeks of turbulence, thanks to a raft of policy steps by authorities to revitalize markets.Most Read from BloombergCitadel Vets 69,000 Intern Applicants to Find Next Math GeniusesPutin Agrees to Visit China in First Trip Since Arrest WarrantWhat to Do With a 45-Story Skyscraper and No TenantsCrypto Scores Landmark US Legal Win With Grayscale ETF RulingStocks Up Most Since June as Fed Bets Sink Yields: Markets WrapW

While investors have said policymakers need to do more for equities to see a sustainable rebound, Beijing’s latest measures — including a cut on stamp duty for stock trading and curbs in share selling by major stakeholders — appear to have put a floor under the market for now.

China’s largest banks are preparing to cut interest rates on existing mortgages and deposits, the latest attempt by authorities to arrest a slump in the market and reach the 5% economic growth goal. The largest exchange-traded fund focused on Chinese stocks, Huatai-Pinebridge CSI 300 ETF, has seen a surge in inflow this month, a sign that some investors have been buying the dip and betting on a turnaround.

Foreign investors sold 2.5 billion yuan of onshore stocks on a net basis, on track for a record monthly withdrawal.

 

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