Leisure sector drags down Chinese shares

China’s central bank cut the interest rate on its medium-term lending facility (MLF) for financial institutions on Wednesday by 20 basis points to 2.95 percent, a record low.

However, there was little reaction from investors to the People's Bank of China move. The benchmark Shanghai Composite Index reversed its gains in the previous session and dipped 0.57 percent to finish at 2,811.17 points.

The smaller Shenzhen Component Index edged down 0.56 percent to close at around 10,417.37, while the ChiNext Index declined 1.40 percent to finish at 1,9 77.51 points.

The combined turnover of the two bourses came to 641 billion yuan (US$ 90.8 billion), compared with the previous trading day’s 589.3 billion yuan.

Across the board, most industries posted weak performances, with the leisure service sector the biggest drag on the day. Major stocks, including Shanghai Jin Jiang International Hotels (Group) Co, China Tourism Group and Caissa Touristic, were down between 1 percent and 4 percent.

Chen Li, director of the Research Institute at Chuancai Securities, told caixin.com that the central bank aims to aid enterprises with low-cost, medium and long-term funds against the background of the coronavirus health crisis. He believes the policy will accelerate the recovery of businesses in all sectors and boost steady economic growth.