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

On Wednesday, the Shanghai Composite experienced a modest increase of 0.1%, closing at approximately 3,730, while the Shenzhen Component saw a decline of 0.2%, finishing at 11,800. This mixed performance among mainland equities occurred as the People's Bank of China opted to maintain the status quo on key interest rates in a move widely anticipated by analysts. The central bank retained the one-year and five-year loan prime rates at 3% and 3.5%, respectively, during the August review, despite recent economic indicators highlighting persisting challenges. Investor sentiment was also dampened by a global sell-off in equities, with U.S. technology companies, specifically chipmakers, facing downward pressure due to valuation concerns. In terms of international trade dynamics, U.S. Treasury Secretary Scott Bessent remarked that discussions between Washington and Beijing are progressing positively. In the Chinese market, share performances were mixed; notable advances were observed in companies such as Sichuan Changhong, which rose 3.9%, China Northern Rare Earth at 3%, and Leo Group at 4.5%. These gains were counterbalanced by declines in Foxconn Industrial, which dropped 2.3%, Zhongji Innolight at -4%, and Eoptolink Technology at -3.6%.