FX.co ★ China Stocks Wobble as PBOC Holds Rates

On Monday, the Shanghai Composite Index experienced a slight decline of 0.2%, settling around 3,810, whereas the Shenzhen Component saw a modest rise of 0.1%, reaching 13,080. This mixed performance followed the latest policy update from the People's Bank of China, which opted to maintain its one- and five-year loan prime rates at 3% and 3.5%, respectively, for the fourth consecutive month. This decision occurred despite a recent rate cut by the US Federal Reserve. Chinese authorities have thus far avoided implementing significant stimulus measures, even in the face of economic data indicating a slowdown in economic momentum. Among the sectors, notable gains were observed in Foxconn Industrial, which surged by 6.7%, Senteed Hi-Tech Group, which climbed 10%, and Lingyi iTech, which rose by 8.2%. Conversely, significant declines were noted in Zhongji Innolight, down by 3.9%, Eoptolink Technology, which dropped by 5.4%, and Victory Giant, which fell by 2%.