FX.co ★ China Stocks Rise as PBOC Cuts Rates

On Tuesday, the Shanghai Composite Index edged up by 0.2%, crossing 3,370, while the Shenzhen Component also increased by 0.2%, reaching 10,195. This movement followed investors' reactions to the People's Bank of China's announcement of a reduction in key lending rates for the first time in seven months. Specifically, at the May rate setting, the PBoC decreased the one-year loan prime rate (LPR) by 10 basis points to 3.0% and similarly reduced the five-year LPR, which influences mortgage rates, to 3.5%. This decision, anticipated by the market, is aimed at reinvigorating an economy facing sluggish performance due to trade tensions hindering growth. Moreover, investor sentiment received a boost as shares of China's Contemporary Amperex Technology, the globe's largest battery manufacturer, soared in their Hong Kong debut, marking the largest global listing of 2025. Among the notable gainers were China Merchants Bank, rising by 0.8%, BYD Company, with a 0.6% increase, and Kweichow Moutai, which climbed 0.4%.