China: Stocks close higher on policy expectations

[SHANGHAI] China shares rose for a third straight day on Wednesday after the central bank vowed to support economic growth, but trading volume touched a three-month low as many investors see the rebound as short-lived.

The CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 0.8 per cent, to 3,434.12, while the Shanghai Composite Index gained 0.5 per cent, to 3,157.70 points.

The People's Bank of China made clear late on Tuesday it was ready to fight any downturn in the world's second-largest economy, but added it would avoid "pumping out" too much cash.

The comments reinforced expectations more policy easing is on the cards. But market excitement over such stimulus has flagged after recent government crackdown on margin financing signalled regulators' desire to channel money into the real economy, rather than the stock market.

REUTERS