China Stocks Slip as Rate Cut Fails to Convince Investors

China’s turbulent stock markets slipped again on Wednesday, as a double-barrelled blast of central bank stimulus failed to convince investors of Beijing’s ability to jolt the world’s second biggest economy out of its slowdown.

After watching share prices tumble around 25 percent in a little more than a week, the People’s Bank of China re-entered the fray late on Tuesday, cutting interest rates and further loosening bank lending restrictions.

The response from China’s two main stock indexes – never reliable barometers of the domestic economy – was typically erratic, lurching between gains and losses of more than 3 percent before ending the day modestly lower.

European markets had risen sharply immediately after the People’s Bank of China’s move on Tuesday, but U.S. indexes turned negative after an initial leap, setting the tone for a lacklustre session in Asia on Wednesday.

Reuters

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