Interest rate cut boosts Chinese stocks

BEIJING -- Chinese stocks saw a bullish run on Monday as the unexpected interest rate cut on Saturday boosted market sentiment.

The benchmark Shanghai Composite Index edged up 0.78 percent to finish at 3,336.28 points, while the Shenzhen Component Index advanced 1.07 percent to close at 11,884.02 points.

The Hushen 300 Index, which samples about a fifth of all stocks listed on the two bourses, gained 0.8 percent to close at 3,601.26 points.

The ChiNext Index, China's Nasdaq-style tracking board of growth enterprises, climbed 3.06 percent to end at 1,986.99 points.

The central bank cut the benchmark interest rate on Saturday, the second such cut in less than four months as policymakers stepped up efforts to resist the downward pressure on the world's second-largest economy.

The benchmark deposit and loan interest rates were slashed by 25 basis points from March 1, bringing the one-year deposit rate to 2.5 percent, and the lending rate to 5.35 percent.

Stocks related to environmental protection, securities and Internet finance led the gains, with a string of concept stocks related to air condition treatment soaring by the daily limit of 10 percent.

Zhejiang Feida Environmental Science & Technology Co climbed 10.03 percent to end at 17.12 yuan ($2.80). Hebei Sailhero Environmental Protection High-tech Co gained 10.02 percent to 19.32 yuan.

Banks, insurance and oil sectors were among the biggest losers. China Petroleum and Chemical Corporation (Sinopec Group) lost 0.95 percent to end at 6.26 yuan. PetroChina Company Ltd, another major state-owned oil company, ended 0.88 percent lower at 11.32 yuan.