Chinese Stock Market Declines as Interest Rates Remain Unchanged
Chinese shares fell again as both China and the US maintained benchmark interest rates. The Shanghai Composite Index decreased by 0.5%, while the Shenzhen Component Index fell by 0.9%. China’s lending rates remain unchanged, and the US Federal Reserve signaled potential rate cuts. Notably, Jiangxi Jiangnan New Material Technology saw its shares surge 607% on its trading debut.
On Thursday, Chinese shares experienced further declines as both China and the United States opted to maintain their benchmark interest rates. The Shanghai Composite Index, which serves as a primary indicator for Chinese stocks, decreased by 0.5%, settling at 3,408.95 points. Additionally, the Shenzhen Component Index saw a decline of 0.9%, closing at 10,879.49 points.
China has kept its benchmark lending rates steady, with the one-year loan prime rate set at 3.1% and the five-year LPR remaining at 3.6%. Concurrently, the United States Federal Reserve decided to hold interest rates stable between 4.25% and 4.5%, yet has indicated the possibility of two rate cuts later this year, as reported by NBC News.
In corporate developments, shares of Jiangxi Jiangnan New Material Technology (stock code: 6603124) experienced a remarkable surge, soaring 607% above its initial public offering price of 10.54 yuan on its inaugural trading day on the Shanghai stock exchange.
In summary, Chinese stock markets are facing challenges following the decision of both China and the United States to maintain current interest rates. While the Shanghai Composite and Shenzhen Component indices declined, investor confidence spiked for Jiangxi Jiangnan New Material Technology following its substantial IPO performance. The outlook remains cautious as market participants await further developments regarding potential rate reductions from the US Federal Reserve.
Original Source: www.tradingview.com
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