Stimulus Helps Shanghai Composite Opened Up 0.5%

China's stock market opened positively respond to the government stimulus to stabilize its stock market returns. Shanghai Composite Index opened up 0.5% at 2980.79 points level while the Hang Seng index opened flat at the level of 21409.4. China's major indexes have fallen about 19% in just the past three sessions.

People's Bank of China (PBoC) cut interest rates by 25 basis points to 4.6%, the fifth interest rate cut since November. PBoC also improve liquidity in financial markets by lowering the Giro Minimum Mandatory or requiement Reserve Ratio (RRR) of banks by 50 basis points to 18% for large banks. Today China Financial Futures Exchanges trying to maintain the stability of the market by raising transaction costs and margin requirements for futures indices.

While the Hang Seng index was flat as the decline in energy stocks follow oil prices are still at their lowest level for more than 6 years. Shares of China Petroleum & Chemical Corp. dropped 2.7% followed by a decline of 0.96% PetroChina Co.