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

The Shanghai Composite Index increased by 0.4% to approximately 3,550, while the Shenzhen Component rose by 0.5% to 10,965 on Monday. These gains marked multi-month highs for mainland stocks following the People's Bank of China's decision to maintain key lending rates at historic lows for July. This decision underscores Beijing's ongoing efforts to bolster the economy in the face of weak consumer sentiment and a deceleration in growth. Specifically, the one-year loan prime rate, which influences most corporate and household borrowing, was kept steady at 3.0%. Meanwhile, the five-year loan prime rate, a pivotal benchmark for mortgage rates, remained unchanged at 3.5%. Investor sentiment was also swayed by international trade developments, notably as U.S. Commerce Secretary Howard Lutnick reiterated that August 1 remains a "hard deadline" for countries to start paying tariffs, despite ongoing negotiations. Among the prominent gainers were China Northern Rare Earth, which saw an increase of 3.6%, Huadian New Energy at 7.7%, Wolong Electric at 10%, Contemporary Amperex at 2.5%, and Zhejiang Changshen with a substantial rise of 17.2%.