Chinese and Hong Kong shares moved higher on Monday as steady policy settings and improving domestic demand gave investors a more constructive read on the near-term market backdrop. The immediate catalyst was the decision to leave China’s benchmark loan prime rates unchanged, which signalled continuity rather than restraint.
The one-year loan prime rate was held at 3.1 per cent and the five-year rate at 3.6 per cent, matching market expectations. The move pointed to an official preference for stability at a point when authorities appear focused on sustaining growth without unsettling the financial system. A stable rate environment can help investors judge funding conditions more clearly, especially in sectors where borrowing costs and property-linked demand remain important.
Market sentiment was also helped by signs that consumption remained active during the Qingming Festival holiday period. Travel spending and tourism activity were described as solid, giving investors another indication that household demand is still contributing to the recovery picture.
In Hong Kong, the Hang Seng Index rose as technology and consumer-related names found support. That added to the sense that investors were willing to rotate back into risk assets where valuations and policy expectations looked manageable.
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