SHANGHAI, Oct 20 (Reuters) - China shares rose on Monday, helped by speculation of further policy easing after a report that the country’s central bank was set to inject funds into to several banks.
The People’s Bank of China is set to inject about 200 billion yuan ($32.66 billion) worth of three-month loans into five or six listed banks to keep liquidity ample and support the slowing Chinese economy, four sources with knowledge of the matter told Reuters late on Friday.
The Shanghai Composite Index ended up 0.7 percent to 2,356.7 points. The CSI300 of the leading Shanghai and Shenzhen A-share listings gained 0.5 percent.
The anticipated PBOC move comes amid signs that Chinese investors are beginning to bet that the central bank is going to reduce the official deposit rate, now fixed at 3 percent.
But analysts said the market faced strong profit-taking pressure amid worries over the economy. Next in focus will be third-quarter growth data, due on Tuesday.
$1 = 6.1241 Chinese yuan Reporting by Chen Yixin and Pete Sweeney; Editing by Richard Borsuk