Chinese Markets Decline Amid Interest Rate Hold and Potential Trade Tensions with the U.S.

Chinese markets saw a decline at the close of trading on Monday,
influenced by the central bank’s decision to maintain interest rates on medium-term loans,
alongside rising concerns about a potential trade war with the United States.
Additionally, stocks in Hong Kong fell to their lowest levels in two months.

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Indices
Technology

Indices

The CSI 300 index closed 0.46% lower at 3,848 points, its lowest level since last October.
Meanwhile, the Shanghai Composite Index saw a slight drop of 0.11%,
closing at 3,263 points after hitting a three-week low.
Conversely, the Shenzhen Composite Index rose by 0.4% to 1,974 points,
while Hong Kong’s Hang Seng Index lost 0.41% to close at 19,150 points, erasing gains made since September.

Technology

The technology sector led the declines, with the chipmakers’ index dropping by 1.3%.
Similarly, the STAR 50 index, which focuses on technology companies, fell by 1.2%.
On the other hand, the index of renewable energy vehicle manufacturers rose by 1.6%,
supported by reports suggesting that Brussels and Beijing are nearing an agreement on tariffs for Chinese electric vehicles.

The People’s Bank of China kept the interest rate on medium-term loans at 2%,
while last week it maintained the one-year and five-year lending rates at 3.1% and 3.6%, respectively.
In the currency market, the U.S. dollar held steady at 7.2458 yuan.

Chinese Markets Decline Amid Interest Rate Hold and Potential Trade Tensions with the U.S.

Chinese Markets Decline Amid Interest Rate Hold

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