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Chinese shares open 1.25% lower on weak confidence

(Xinhua)
Updated: 2008-12-24 10:17

Chinese shares opened 1.25 percent lower on Wednesday as investor sentiment was hurt by the smaller-than-expected interest rate cuts and an overnight Wall Street loss, dealers said.

The People's Bank of China, the central bank, on Monday cut the benchmark one-year yuan lending and deposit rates by 0.27 percentage points, effective from Tuesday. The magnitude was below investors' expectations and deemed too small to buoy enough confidence.

The benchmark Shanghai Composite Index, which covers both A and B shares, edged down 1.25 percent, or 23.65 points, to 1,873.58 at the opening.

The smaller Shenzhen index was down 1.17 percent, or 81.62 points, to open at 6,871.29 points.

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