Shanghai Composite down 0.61% at 2,964 points (Il Sole 24 Ore Radiocor) - Shanghai , 22 Jul - Chinese shares closed lower amid weak Asian markets as a surprise rate cut by China's central bank failed to lift sentiment.

The People's Bank of China unexpectedly slashed short-term rates by 10 basis points, sending long-term borrowing costs and bond yields lower.

The central bank cut the seven-day revere repo rate to 1.7% from 1.8% aiming to strengthen counter-cyclical adjustments to better support the real economy, the official Xinhua news agency reported citing a statement from the central bank.

On Sunday Beijing's released a policy document outlining its ambitions for the economy.

Trade tensions with the US and dismal results from the Third Plenum recently weighed on investor sentiment.

Investors were disappointed by the lack of details on implementation steps to achieve economic policy goals at the end of the closely monitored policy meeting, a major gathering of the top members of the ruling Communist Party of China usually held every five years.

Increased speculation over a second term for Donald Trump also weighed on Chinese stocks. In his first presidential term from 2017 to 2021, Trump had slapped steep tariffs on China, fuelling a prolonged trade war between the world's two major economies. Investors now digested news that US president Joe Biden had dropped out of the presidential race and endorsed vice president Kamala Harris as the Democratic nominee.

The Shanghai Composite closed down 0.61% at 2,964 points, while the Shenzhen CSI 300 fell 0.68% to 3,514 points.

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(RADIOCOR) 22-07-24 11:32:52 (0243) 5 NNNN