FX.co ★ China Stocks Wobble as PBOC Stands Pat

On Thursday, the Shanghai Composite Index saw a slight increase of 0.2%, rising above 3,950 points, while the Shenzhen Component dipped by 0.15% to settle at 13,060. Mainland Chinese stocks exhibited varied outcomes as China's central bank opted to maintain its key lending rates, a decision anticipated by the market, thus indicating no upcoming policy easing. The People's Bank of China (PBOC) kept the one-year and five-year loan prime rates steady at 3% and 3.5%, respectively, marking the sixth consecutive meeting at these record lows. Market participants also considered the repercussions of escalating diplomatic tensions between Beijing and Tokyo, following remarks on Taiwan by Japanese Prime Minister Sanae Takaichi. In the technology sector, stocks experienced an upswing, buoyed by Nvidia's robust earnings report, which alleviated concerns over a potential artificial intelligence market bubble. Leading gainers included Zhongji Innolight, which rose by 1.9%, Eoptolink Technology at 1.4%, Beijing Teamsun climbing by 4.4%, Foxconn Industrial with a 0.6% increase, and Victory Giant, up by 0.9%.