On Monday, the Shanghai Composite Index increased by 0.22% to reach 3,829, and the Shenzhen Component Index advanced by 0.67%, closing at 13,158. This upward movement followed a two-day decline, supported by indications of progress in the ongoing US-China discussions. President Donald Trump remarked that he and Chinese President Xi Jinping have advanced in their negotiations concerning a TikTok deal. They also plan to meet in South Korea in six weeks to deliberate on trade, the illicit drug trade, and the situation with Russia's intervention in Ukraine.
In terms of monetary policy, the People’s Bank of China opted to maintain the one-year and five-year loan prime rates at 3% and 3.5%, respectively, for the fourth month in a row. This decision comes despite a recent rate reduction by the US Federal Reserve. Thus far, Chinese authorities have refrained from implementing major stimulus measures, despite signs of decelerating economic growth.
Within the stock market, technology stocks showed strong performance. Hygon Information Technology surged by 10.6%, Cambricon Technologies saw an increase of 3.4%, Foxconn Industrial rose by 6.6%, and Dawning Information Technology climbed by 10%.
