SHANGHAI: China stocks edged up on Monday as the key lending rates were left unchanged and investors awaited new catalysts to determine market direction in a tit-for-tat trade war with the US
China stocks edge lower, set to end week flat
China’s blue-chip CSI300 Index rose 0.2% by the lunch break, while the Shanghai Composite Index gained 0.3%. The Hong Kong market is closed for a local holiday.
China kept benchmark lending rates steady for the sixth successive month on Monday, matching market expectations.
Non-ferrous metals rose 2.7%,leading gains onshore, as dollar tumbled and gold soared to record high on trade war concerns.
Financial shares fell 0.3%.
Beijing warned countries against striking a broader economic deal with the US at its expense, ratcheting up its rhetoric in a spiralling trade war between the world’s two biggest economies.
On Friday, China issued a plan to further open the country’s service sector, proposing to lift foreign equity ratio restrictions for app store services. A press conference is scheduled at 0700 GMT for more details.
Meanwhile, focus is also shifting towards the upcoming month-end politburo meeting for clues into policy support, but expectations for immediate policy rollouts among onshore equity investors remain low, UBS analysts said.
“Both hedge funds and long-onlys are taking a more defensive approach towards A-shares, although they agree that A-shares will be more resilient amid national team support,” UBS analysts said.
China’s state funds have been supporting the country’s stock market since April 2 when US President Donald Trump announced reciprocal tariffs that upended global markets.
The Hong Kong market will resume trading on Tuesday.