The Shanghai Composite rose 0.6% to around 3,915, while the Shenzhen Component climbed 1.1% to 13,288 on Monday, with mainland stocks extending a four-session rally to a two-week high after the central bank left key lending rates unchanged. The People’s Bank of China kept its one-year Loan Prime Rate at 3.0% and the five-year LPR at 3.5%, holding both at record lows for the seventh consecutive month. The central bank also left the seven-day reverse repo rate at 1.4%, following November data that showed slower growth in retail sales and industrial output amid ongoing property-sector strains. Technology stocks led the advance amid renewed optimism over AI trade, such as Eoptolink (+6.9%), Zhongji (+5.2%), and Foxconn (+2.8%). Notable gainers included Agricultural Bank (+0.7%), Zijin Mining (+3.7%), and BYD (0.4%). Meanwhile, consumer stocks are set for their longest-ever streak of annual underperformance, dragged down by weak retail sales, falling home prices, and subdued consumption.
