FX.co ★ China Stocks Rise as PBOC Cuts Rates

The Shanghai Composite Index saw an uptick of 0.4%, closing at 3,380, while the Shenzhen Component climbed 0.8% to end at 10,249 on Tuesday. This positive shift in market sentiment followed the People's Bank of China's decision to reduce key lending rates for the first time in seven months. During the May rate announcement, the central bank decreased the one-year loan prime rate (LPR) by 10 basis points to 3.0%, alongside a similar reduction in the five-year LPR, crucial for determining mortgage rates, now standing at 3.5%. In an effort to bolster the economy, major Chinese state banks also reportedly lowered deposit rates, aligning with broader monetary easing measures. Further enhancing market sentiment was the surge in shares of Contemporary Amperex Technology, the world's leading battery producer, during their Hong Kong market debut — this event being recognized as the largest global listing anticipated in 2025. Among the notable gainers were China Merchants Bank (up 0.8%), BYD Company (up 3.1%), Cambricon Technologies (up 1.4%), and Inner Mongolia BaoTou Steel (up 2.2%).