FX.co ★ China Stocks Gain as PBOC Stands Pat

The Shanghai Composite Index rose 0.4% to 3,925 on Monday, while the Shenzhen Component advanced 0.8% to 13,743, after the People’s Bank of China left its benchmark lending rates unchanged for a 16th straight month at record lows. The one-year loan prime rate (LPR) was held at 3.0%, and the five-year LPR remained at 3.5%.

The decision reflected policymakers’ caution over potential economic fallout from the conflict in the Middle East, even as Chinese exports continued to benefit from strong AI-related demand. Nonetheless, slowing growth, muted inflation, and weak credit demand still leave room for a possible rate cut before year-end.

Meanwhile, investors continued to monitor high-level US-China engagement after a delegation led by US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng met on Sunday, laying the groundwork for a closely watched Trump–Xi summit.

Among notable gainers were Foxconn Industrial Internet (+2.8%), WuXi AppTec Co (+2.2%), Shennan Circuit (+5.0%), and Chaozhou Three-Circle (+5.9%).