Chinese Shares Decline as PBOC Holds Rates, Fed Signals Cuts

Chinese shares continued to decline as both China and the United States maintained their benchmark interest rates, with the Shanghai Composite Index falling 0.5% and the Shenzhen Component Index down 0.9%. The People's Bank of China kept the one-year loan prime rate at 3.1% and the five-year rate at 3.6%, disappointing investors looking for stimulative measures. Simultaneously, the US Federal Reserve held rates steady at 4.25% to 4.5% while hinting at potential rate cuts later this year, which helped to bolster regional sentiment elsewhere in Asia. However, the outlook for Chinese stocks remained cautious, with significant losses reported among major firms like Ping An Insurance and Kweichow Moutai. Analysts pointed out that lack of specific details in China's plans to boost consumer spending contributed to investor hesitance. Overall, the weakness in Chinese markets has been a drag on broader Asian equities, highlighting contrasting sentiments between US and Chinese economic prospects.