What does China's rate cut mean for equities?

China's move to cut rates should provide a boost for beaten up stock market sentiment in China, said Henderson's Charlie Awdry.

Awdry, running the £594m Henderson China Opportunities fund, said the policy action from the Chinese authorities was a 'positive surprise' which could help boost sentiment. Chinese shares have been in the doldrums over the last year, with the H share market (Hong Kong's Hang Seng index) down 20% in the last 12 months. A slowdown in official growth rates and a property bubble have bought the market down by a fifth, but Awdry said this long-awaited policy action could help to turn sentiment around. "The data on the Chinese economy has not been good for a while now and people have bee...