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Chinese stocks rise hoping for additional incentives

US, WASHINGTON (NEWS OBSERVATORY) — China stocks rose Wednesday as investors hoped for additional monetary stimulus measures after the Federal Reserve cut interest rates to deal with the economic consequences of coronavirus.

The blue chip index CSI 300 added 0.58% to 4.115.05 points. The Shanghai Composite Index rose 0.63% to 3,011.67 points.

Hong Kong’s Hang Seng Index fell 0.24% to 26.222.07 points, while the Hang Seng China Enterprises Index climbed 0.35% to 10.521.78 points.

The Federal Reserve suddenly cut its key rate by 50 basis points on Tuesday.

However, Beijing, which has already launched a number of measures to support the economy, on Wednesday kept the cost of short-term loans at the same level, despite the decision of the Federal Reserve.

At the same time, markets still believe that the Chinese authorities will continue to lower the cost of financing for companies.

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Article is written and prepared by our foreign editors from different countries around the world – material edited and published by News Observatory staff in our US newsroom.