FX.co ★ China Stocks Rise as PBOC Holds Rates Steady

The Shanghai Composite Index experienced a gain of 0.72%, closing at 3,560, while the Shenzhen Component Index rose by 0.86% to reach 11,007 on Monday. This upward trend in mainland markets occurred after the People's Bank of China maintained its key lending rates at historic lows for July. Specifically, the central bank held the one-year loan prime rate steady at 3.0% and the five-year LPR at 3.5%, signaling continued efforts to bolster the economy amidst tepid consumer sentiment and decelerating growth. Additionally enhancing market optimism, China's Ministry of Industry and Information Technology committed to stabilizing growth in crucial sectors like machinery, automobiles, and electrical equipment. This initiative is part of a comprehensive strategy addressing 10 industries, which also includes steel, nonferrous metals, petrochemicals, and construction materials. Among the notable performers, China Northern Rare Earth surged by 6.3%, Zhongji Innolight advanced by 4.1%, Huadian New Energy soared by 13.7%, Contemporary Amperex climbed by 3.1%, and Wolong Electric appreciated by 10%.