Chinese shares close higher Thursday after U.S. Fed rate hike


BEIJING, March 16, (Xinhua) — Chinese stocks closed higher Thursday after the Federal Reserve announced its decision to increase rates.The benchmark Shanghai Composite Index went up 0.84 percent to 3,268.94 points. The smaller Shenzhen index closed 0.77 percent higher at 10,624.42points. The ChiNext Index, which tracks China’s high-growth enterprises, gained 0.45 percent to close at 1,966.73 points.Combined turnover expanded to 550.5 billion yuan (about 79.9 billion U.S. dollars) Thursday.
The U.S. Federal Reserve on Wednesday raised interest rates for the second time in three months, hinting of more to come this year.Interest rates of Chinese open market operation tools, the medium-term lending facility (MLF) and reverse repos, also increased Thursday.
The higher rates were results of changes in market demand and supply and did not indicate a shift in China’s monetary policy stance, the central bank said.Stocks related to securities traders and titanium dioxide led the gains, while shares of liquor, agricultural services and white goods eased.