FX.co ★ China Stocks Rally as PBOC Signals Policy Easing

On Wednesday, the Shanghai Composite rose by 0.7% to approximately 3,340, while the Shenzhen Component increased by 0.9% to reach 10,170. This upward trend continued from the previous day's session, bolstered by the announcement from China's central bank regarding its intention to lower key interest rates to enhance economic growth amid growing trade tensions with the United States. The People's Bank of China declared a reduction in key lending rates by 10 basis points, along with a 50 basis-point decrease in the reserve requirement ratio. Investor optimism was further amplified by reports that Vice Premier He Lifeng is scheduled to meet with US Treasury Secretary Scott Bessent in Switzerland later this week to discuss tariffs and trade, sparking hopes for progress in their negotiations. The rally was largely driven by technology stocks, with notable gains from companies such as East Money (5.4%), Hithink Royalflush (6.5%), Hydsoft Technology (7.5%), Shanghai Stonehill (5.8%), and Luxshare Precision (1.7%).