FX.co ★ China Stocks Rally to 10-Year High

On Monday, the Shanghai Composite index rose by 0.85% to reach 3,728, while the Shenzhen Component climbed 1.73% to 11,836. The Shanghai Composite marked its highest point since 2015, driven by robust buying from both institutional and retail investors. These gains were attributed to the extended US-China tariff truce and anticipation of new stimulus measures from Beijing geared towards bolstering economic growth. Last Friday, the People’s Bank of China committed to enhancing its monetary policy framework, pledging to refine a moderately loose approach as challenges in the property market continued. Investors now await the central bank’s policy announcement this week, with expectations that loan prime rates will remain stable. Among the prominent gainers were Beijing Compass, which soared 14.6%, ZTE Corp with an 8.8% rise, Hithink Royalflush up 10.3%, China Northern Rare Earth increasing by 10%, and Zhongji Innolight with a 9.2% gain.