Central bank moves fail to stem falling stocks

Chinese stocks ended lower yesterday as concern about the global financial crisis and China's economic slowdown offset an easing of monetary policy.

China's central bank said it was cutting benchmark one-year bank lending and deposit rates by 27 basis points, and reducing the ratio of deposits that all banks must hold in reserve by half a percentage point, in its most aggressive easing this decade.

Analysts expect more easing in coming months, and many believe the government hopes to support the Shanghai Composite Index above the psychologically important level of 2000 points. But as long as the global crisis continues, investors may remain reluctant to buy stocks actively.