FX.co ★ China Stocks Gain for Second Session

On Wednesday, the Shanghai Composite index gained 0.3%, reaching approximately 3,390, while the Shenzhen Component index saw a 0.5% increase, climbing to 10,300. This marked the second consecutive session of gains for mainland stocks. The positive market sentiment was largely influenced by China's central bank's decision to reduce key lending rates for the first time in seven months, aiming to stimulate growth and alleviate trade-related risks. In tandem, major state banks reduced deposit rates to relieve pressure from narrowing interest margins. Investor confidence received an additional boost as shares of CATL maintained their upward trajectory following a robust debut in Hong Kong, marking the largest IPO this year. However, ongoing trade uncertainties were highlighted by China's warning of potential legal action against parties supporting U.S. restrictions on advanced Chinese semiconductors. This issue cast a shadow over the prospect of a trade agreement, as reports indicated Chinese companies were considering alternatives to the U.S. market. Among the top-performing stocks were Contemporary Amperex Technology Co. Ltd. with a 4.4% increase, BYD Company up by 1.7%, Gotion High-Tech soaring by 10%, and Montnets Cloud Technology rising 4.5%.