China shares shaky in early trade

It was a volatile first 20 minutes of trade on Wednesday. The benchmark Shanghai Composite Index opened 0.53 higher, then fell as much as 2.31 percent, before returning to positive territory.

The Shenzen Composite Index, which tracks stocks on China's second exchange, was down 0.12 percent or 2.07 points, to 1,747.00.

On Tuesday, China's central bank again cut interest rates and lowered the amount of cash banks must have on hand, in a bid to ease pressure on lenders. It was the fifth interest rate cut since November.

"In all, the central bank's move has helped with the market sentiment today, despite the current volatility," Phillip Securities analyst Chen Xingyu told news agency AFP on Wednesday.

But it was "unrealistic to think that the government measures can turn the market tide completely," he added.

The move by China's central bank came after the Shanghai index closed down 7.6 percent on Tuesday following a 9 percent loss on Monday. The losses in the world's second-largest economy and fears over its potential impact sent shockwaves through markets around the world.

China's central bank said in a statement that its "economic growth remains under pressure," adding the cuts would "support the real economy to continue to develop healthily."

Beijing has forecast annual growth this year of around 7 percent, a figure many economists regard as too high considering the weak economic data the country has logged since January.

jr/lw (dpa, AFP)