sam baddas filed this report. >> reporter: china's central bank taking the market by surprise with theigger than expected cut to the lending rate. slashing the five-year fluences mortgages. it is the first cut since june. market was expecting a 15-basis point cut. the one-year rate was held steady which was surprisiingly expected. the lmp acts as a guide. the state media hinted the five-year rate could be reduced signaling a desire to help the struggling tsector. analysts say the move sends powerful signals by authorities that they are willing to support the real estate sector ans well as the banks which provided a buffer. the interest rate cut failed to impress the markets in morning trade. investors are not convinced. the major indices falling after the announcement which raises questions. did investors want more from policymakers? are they waiting to see the cut take effect or are there concerns it won't go far enough? the market awaiting more signals from the government meetings in beijing. i'm sam baddas in singapore. >>> let's show you how european equities are faring one hour in

in singapore, i'm sam baddas, cnbc business news. >>> here is how chinese equities performed when theyback online after being closed for more than a week. the shanghai composite with a tepid start to the trading session, but rallied with the shanghai comp closing up 1.5%. the shenzhen up 1.7%. csi 300 up by 1.2%. let's get more perspective on this with our head of intern international. what do you make of the first day trading after the lunar new year holiday? is that a relief? >> yes, thank you for having me on the show. it is a huge relief from high expectation especially during the new year period time. we clearly have liquidity or easing policy put into the policy right before the chinese new year. during that new year, a lot of media reported the high amount of travel expected and spending expected during the eight days of national holiday. indeed, the numbers released today confirmed that consumption picked up in china. market reacts accordingly which is a huge relief to say the market reacts on the fund fundamentals. >> is that sustainable? we also have seen the national team ha