Shanghai stocks fall on hike in interest rates

Source: Xinhua | 2017-02-04

THE Shanghai Composite Index fell 0.6 percent to 3,140.17 points yesterday after the central bank raised short-term interest rates on the first trading day after the Spring Festival holiday.

Financial shares tumbled after the People’s Bank of China raised the interest rates on open market operations by 10 basis points yesterday morning. Market watchers see the PBOC’s move as a policy-tightening step for the domestic market. China Life Insurance retreated 2.22 percent, and Industrial Bank was down 1.99 percent.

Essence Securities said the sentiment for the next two months was positive despite market uncertainties over Trump administration.