Chinese Stocks Continue Rising for Fourth Session Supported by Interest Rate Hold and Tech Momentum

Beijing | EcoPulse24

Chinese stocks continued their gains at the start of the week, recording their fourth consecutive session of increases, with the Shanghai Composite Index rising by 0.6% to nearly 3,915 points, while the Shenzhen Index climbed by 1.1% to about 13,288 points, reaching their highest levels in two weeks, amid a clear improvement in investor sentiment.

This performance was supported by the People's Bank of China's decision to keep the benchmark lending rates (LPR) unchanged for the seventh consecutive month, with the one-year loan rate steady at 3.0%, and the five-year mortgage reference rate at 3.5%, along with maintaining the seven-day reverse repo rate at 1.4%, reinforcing the view of continued supportive monetary policy.

Despite recently released economic data showing a slowdown in retail sales and industrial production in November, amid ongoing pressures in the real estate sector, the market received support from renewed interest in technology stocks, driven by renewed optimism related to artificial intelligence trade.

Technology stocks led the gains, with Eoptolink rising by 6.9%, Zhongji by 5.2%, and Foxconn by 2.8%. Other leading stocks also performed positively, including Agricultural Bank of China up by 0.7%, and Zijin Mining by 3.7%, along with limited gains for BYD stock of 0.4%.

Conversely, consumer sector stocks continued to perform poorly, with expectations of recording the longest annual decline on record, impacted by weak retail sales, declining home prices, and ongoing sluggish domestic consumption.

This market disparity reflects a cautious balance between monetary support on one hand and structural challenges facing domestic demand on the other, while attention remains on any additional measures Beijing may take to bolster confidence and growth in the upcoming phase.