Mainland stock indexes closed lower after China’s GDP disappoints and amid toned down easing expectations, with the Shanghai Composite Index down 0.12% to close at 3,568 while the Shenzhen Component fell 0.46% to end at 14,350. Both indexes recouped much of the day’s earlier losses after sharply selling off upon release of GDP and other economic data.
Meanwhile, market expectations of monetary policy easing lessened as policymakers signaled they have other ways to support growth. Analysts have referred to China’s medium-term lending facility, open market operations and other targeted tools as ways for authorities to support the economy with Goldman Sachs saying the PBOC will not cut the reserve requirement ratio this year.