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China’s blue chips flat as new lending tool fails to excite investors

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SHANGHAI, Nov 9 (Reuters) – China’s bluechips ended flat on Tuesday after China’s central bank introduced a new lending tool, but analysts said it doesn’t have strong easing implications.

** The blue-chip CSI300 index closed unchanged at 4,846.74, while the Shanghai Composite Index gained 0.2% to 3,507.00.

** China’s central bank said on Monday it would provide financial institutions with low-cost loans to help firms cut carbon emissions.

** “The new lending tool does not have strong easing implications as it appears at first glance,” said Zhaopeng Xing, a senior China strategist at ANZ.

** “The PBoC (China’s central bank) will put its policy rates on hold in the near term,” said Xing in a note. “The PBoC will take some time to reassess demand-supply dynamics to determine if the current slowdown is due to supply-side constraints or other factors and decide next steps.”

** Real estate firms shed 0.2% amid intensifying worries over the liquidity crisis in the property sector.

** A think-tank of China’s state council held a meeting with real estate developers and banks on Monday, with developers urging state companies to help private firms improve liquidity. While the think-tank makes policy proposals, it is not a decision-making body.

** The defence sub-index and the semiconductors gained 3.8% and 2.4%, respectively.

Reporting by Shanghai Newsroom; Editing by Rashmi Aich

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