Shanghai Stocks Fall Amid Global Bond Rout

2026-05-20 02:10 By Czyrill Jean Coloma 1 min. read

The Shanghai Composite fell 0.18% to 4,162 on Wednesday, while the Shenzhen Component was flat at 15,570, as a global bond selloff weighed on market sentiment.

Surging oil prices and persistent inflation concerns tied to the prolonged Middle East conflict pushed global bond yields to multi-year highs, with the 30-year US Treasury yield reaching its highest level since 2007.

On the monetary policy front, the People's Bank of China kept benchmark lending rates unchanged for a twelfth straight month in May, leaving the one-year loan prime rate at 3.0% and the five-year LPR at 3.5%.

The decision underscored policymakers’ cautious stance amid uncertainty related to the conflict, even as consumer and producer inflation accelerated due to higher energy costs and supply chain disruptions.

Financial stocks were among the biggest laggards, particularly Industrial and Commercial Bank of China (-1.79%), Agricultural Bank of China (-2.27%), and Bank of China (-2.06%).



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