China Stocks Rebound on Dovish PBOC Signals

2026-07-09 02:07 By Czyrill Jean Coloma 1 min. read

The Shanghai Composite rose 0.2% to 3,978, while the Shenzhen Component gained 0.5% to 15,020 on Thursday, rebounding from one-month lows as investors welcomed the People's Bank of China's commitment to maintaining an accommodative policy stance.

The central bank signaled that it would keep monetary policy appropriately loose and step up financial support to boost domestic consumption, while acknowledging an imbalance between strong supply and weak demand.

The PBOC has kept rates and reserve requirement ratios unchanged, focusing instead on refining its policy framework and transmission mechanisms.

On the economic front, annual consumer inflation eased to a three-month low of 1% in June from 1.2% in May, while producer inflation rose to 4.1% from 3.9%, the fastest pace since July 2022.

Technology stocks led gains, with Zhongji Innolight (3.3%), Eoptolink Technology (2.9%), and NAURA Technology (2.7%) advancing, while energy shares also rose, led by PetroChina (1.2%) and CNOOC (1.2%).



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2026-07-09
China Stocks Rebound on Dovish PBOC Signals
The Shanghai Composite rose 0.2% to 3,978, while the Shenzhen Component gained 0.5% to 15,020 on Thursday, rebounding from one-month lows as investors welcomed the People's Bank of China's commitment to maintaining an accommodative policy stance. The central bank signaled that it would keep monetary policy appropriately loose and step up financial support to boost domestic consumption, while acknowledging an imbalance between strong supply and weak demand. The PBOC has kept rates and reserve requirement ratios unchanged, focusing instead on refining its policy framework and transmission mechanisms. On the economic front, annual consumer inflation eased to a three-month low of 1% in June from 1.2% in May, while producer inflation rose to 4.1% from 3.9%, the fastest pace since July 2022. Technology stocks led gains, with Zhongji Innolight (3.3%), Eoptolink Technology (2.9%), and NAURA Technology (2.7%) advancing, while energy shares also rose, led by PetroChina (1.2%) and CNOOC (1.2%).
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