(Yicai Global) Jan. 4 -- China's stock markets closed strongly today, buoyed by Chinese Premier Minister Li Keqiang who emphasized the need for further financial support for private and small firms at a meeting in Beijing.
Li aims to reduce taxes and costs for these firms, as well as comprehensively lower the reserve requirement ratio. He inspected several state-owned commercial lenders today including the Bank of China, the Industrial and Commercial Bank of China and China Construction Bank before attending the Banking and Insurance Regulatory Commission meeting in the capital.
The Shanghai Composite Index rose 2.05 percent to close at 2,514.87 points with CNY139.2 billion (USD20 billion) swapped. The Shenzhen Component Index closed 2.76 percent higher at 7,284.84 with a turnover of CNY182.9 billion. The Growth Enterprise Index, also in Shenzhen, rose 2.52 percent to 1,245.16 points, with CNY55.8 billion changing hands.
The financial sectors led the market gains including securities brokerages, which rose 6.96%. The insurance and banking sectors also rose 2.14% and 1.69% higher, respectively. All sectors across the board went up, mostly by upwards of 1 percent.
The People's Bank of China, the country's central bank, loosened criteria that the country's lenders should meet to enjoy targeted cuts in RRR on Jan. 3rd. This move is considered to be a signal that further RRR cuts are to come.
Editor: William Clegg