FX.co ★ China Stocks Rise for 4th Session

On Monday, the Shanghai Composite Index advanced 0.6% to approximately 3,915, while the Shenzhen Component increased by 1.1% to reach 13,288. This marked the extension of a four-session rally, lifting mainland stocks to a two-week peak, following the decision by China's central bank to maintain existing lending rates. The People’s Bank of China opted to leave the one-year Loan Prime Rate steady at 3.0% and the five-year Loan Prime Rate unchanged at 3.5%, both remaining at their historic low points for the seventh consecutive month. Additionally, the seven-day reverse repo rate was sustained at 1.4%, in light of November's data highlighting a slowdown in retail sales and industrial production growth amidst ongoing challenges in the property sector. The technology sector was at the forefront of the market's rise, buoyed by renewed positive sentiment towards AI trading, with companies such as Eoptolink gaining 6.9%, Zhongji rising by 5.2%, and Foxconn increasing by 2.8%. Other significant risers included Agricultural Bank, which went up by 0.7%, Zijin Mining with a 3.7% increase, and BYD advancing by 0.4%. In contrast, consumer stocks are poised to continue their record streak of annual underperformance, as they are weighed down by sluggish retail sales, declining home prices, and lackluster consumer spending.