SHANGHAI May 11 China stocks reversed earlier
losses to end higher on Thursday, with sentiment helped by
expectations that the central bank will inject funds via its
medium-term lending facility on Friday.
The blue-chip CSI300 index rose 0.6 percent to
3,356.65 points, while the Shanghai Composite Index rose
0.3 percent to 3,061.50 points.
The People's Bank of China (PBOC) queried some commercial
banks on their demand for medium-term lending facility (MLF)
loans and is expected to inject the funds through the MLF on
It was not known how much it would inject, via which tenors
or whether rates would remain unchanged, but the expectations of
a boost to liquidity encouraged investors.
Investor sentiment has laboured under tighter liquidity
conditions and regulatory measures, including a crackdown on
speculation involving curbs on lending, analysts said.
Real estate and infrastructure stocks
led the advance on Thursday.
However, the tech-heavy start-up board ChiNext
still hovered around a 27-month low.
"Compared with other stocks, valuations for listed start-up
companies are still much higher, and their growth as a whole
also slowed in the first quarter," said Xiao Shijun, an analyst
with Guodu Securities, adding that their growth through mergers
and acquisitions was hit hard by tougher financial regulations.
(Reporting by Luoyan Liu and John Ruwitch; Editing by Simon