Stock markets in Shanghai and Shenzhen ended with losses Tuesday after the central bank's injection of liquidity into the interbank market dashed the expectations of investors hoping for further monetary policy easing.
The Shanghai Composite Index declined 3.90 points, or 0.19 percent, to close at 2,029.29; while the Shenzhen Component Index slumped 0.32 percent, or 26.69 points, to finish at 8,284.25.
Both markets opened lower Tuesday following contractions in the US and European markets. Securities and brokerage stocks stepped up in early trading after the Shanghai Securities Times reported that the China Securities Regulatory Commission (CSRC) may soon put into effect a trial asset management program aimed at helping brokers broaden the scope of their investment options.
Both markets were ultimately pushed into negative territory in the afternoon as gold, non-ferrous metal, gas heating, Internet, media stocks took heavy losses.
The People's Bank of China (PBC) channeled 290 billion yuan ($45.97 billion) into the money market with 100-billion-yuan worth of 14-day reverse repurchase agreements (repos) and 190-billion-yuan worth of 28-day reverse repos Tuesday, according to its official website. These operations added up to the largest one-day fund injection ever made by the PBC, and lowered the possibility that the central bank would soon roll out more easing measures that might lift mainland equity markets, said analysts.
Haitong Securities Co added 1.59 percent to 8.96 yuan ($1.42). CITIC Securities Co went up 1.57 percent to 11.00 yuan.
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