FX.co ★ China Stocks Rise as PBOC Keeps Rates Unchanged

The Shanghai Composite Index advanced by 1.04%, closing at 3,766, while the Shenzhen Component increased by 0.89% to reach 11,927 on Wednesday. The Shanghai Composite achieved a new decade-high after the People's Bank of China maintained steady key interest rates, a decision anticipated by market analysts. The central bank held the one-year and five-year loan prime rates at 3% and 3.5%, respectively, during the August rate announcement despite recent indicators of ongoing economic challenges. Chinese stocks showed resilience, overcoming a global downturn that negatively impacted U.S. chipmakers and technology firms due to valuation concerns. In terms of international trade discussions, U.S. Treasury Secretary Scott Bessent commented this week that the negotiations between Washington and Beijing are proceeding positively. Leading gainers among Chinese equities included China Northern Rare Earth, up by 2.2%, ZTE Corp rising 5.7%, Sichuan Changhong increasing 4.5%, Cambricon Technologies climbing 8.5%, and Leo Group ascending 3.9%.