China Stocks Gain as PBOC Stands Pat

2026-09-21 01:58 By Czyrill Jean Coloma 1 min. read

The Shanghai Composite rose 0.4% to 3,925 on Monday, while the Shenzhen Component gained 0.8% to 13,743, as the People’s Bank of China kept its benchmark lending rates unchanged for a 16th consecutive month at record lows.

The one-year loan prime rate (LPR) was maintained at 3.0%, while the five-year LPR was held at 3.5%.

The decision underscored policymakers’ caution over the economic fallout from the conflict in the Middle East, although exports continued to benefit from robust AI-related demand.

Still, slowing growth, subdued inflation and weak credit demand continue to provide scope for a rate cut before year-end.

Meanwhile, attention remained focused on high-level US-China engagement after officials led by Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng met on Sunday to set the stage for a closely watched Trump-Xi summit.

Notable gainers included Foxconn Industrial Internet (2.8%), WuXi AppTec Co (2.2%), Shennan Circuit (5%) and Chaozhou Three-Circle (5.9%).



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China Stocks Gain as PBOC Stands Pat
The Shanghai Composite rose 0.4% to 3,925 on Monday, while the Shenzhen Component gained 0.8% to 13,743, as the People’s Bank of China kept its benchmark lending rates unchanged for a 16th consecutive month at record lows. The one-year loan prime rate (LPR) was maintained at 3.0%, while the five-year LPR was held at 3.5%. The decision underscored policymakers’ caution over the economic fallout from the conflict in the Middle East, although exports continued to benefit from robust AI-related demand. Still, slowing growth, subdued inflation and weak credit demand continue to provide scope for a rate cut before year-end. Meanwhile, attention remained focused on high-level US-China engagement after officials led by Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng met on Sunday to set the stage for a closely watched Trump-Xi summit. Notable gainers included Foxconn Industrial Internet (2.8%), WuXi AppTec Co (2.2%), Shennan Circuit (5%) and Chaozhou Three-Circle (5.9%).
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