FX.co ★ China Stocks Rise for 2nd Session

On Wednesday, the Shanghai Composite Index edged up by 0.2% to finish at 3,387, while the Shenzhen Component Index increased by 0.4% to 10,294. This marked the second consecutive session of gains for mainland stocks, pushing them to a one-week high. The rise was notably driven by strong performances in the mining and battery sectors. Positive market sentiment prevailed following the central bank's decision to reduce key lending rates for the first time in seven months, aiming to bolster economic growth and mitigate trade-related risks. Additionally, major state-owned banks cut deposit rates to alleviate the strain from shrinking interest margins. In corporate news, electric vehicle battery leader CATL surged 4.2% after its impressive initial public offering in Hong Kong, marking the largest IPO of the year. Other battery-related stocks also saw gains, with BYD Company climbing 1.3% and Gotion High-Tech surging 10%. Mining stocks benefitted from rising gold prices, with Zijin Mining up 4.5%. Moreover, CMOC Group, the leading global cobalt producer, saw its shares rise by 3% after it called on the Democratic Republic of Congo last week to lift its export ban on the crucial battery metal.