Stocks sink as rate cuts fail to cheer

SHANGHAI: Chinese stocks fell over 4 percent yesterday on broad disappointment over the narrow magnitude of the benchmark interest rate cut and weighed down by heavyweight stocks.

On the heels of cuts in the US and Japan last week, the People's Bank of China, the central bank, slashed lending and deposit rates by 0.27 percentage point respectively on Monday, effective from Tuesday, to stimulate the stalling economy.

The reserve requirement ratio, which has been cut by 0.5 percentage points, will come into effect from tomorrow.