PBoC Held Prime Rates Amid Clouded Economic Growth Outlook

Li Chen
22 Jun, 2026
Hong Kong

Stocks in China diverged, and investors returned from a three-day weekend and reviewed the latest rate decisions. 

The Hang Seng Index decreased 1%, and the mainland-focused CSI 300 Index increased 0.7% amid lingering uncertainty in the Middle East and mixed domestic economic data. 

The People's Bank of China held its loan prime rates steady for the thirteenth month in a row following mixed economic data released last week.

Policymakers left the one-year rate at 3.0% and the five-year rate at 3.5% as retail spending growth, urban jobless rate, and residential property market investment data confirmed the weakening economic growth outlook. 

Across Asia, benchmark indexes advanced, and AI- and semiconductor-linked stocks led gainers in Tokyo, Seoul, and Taipei. 

Financial markets in New York are likely to trade volatile as investors return from a three-day holiday on Monday, and ongoing uncertainty in the Middle East is likely to keep gains in check. 

Brent crude oil prices fell 1.6% to $79.26 a barrel, and conflicting messages from the U.S. and Iran kept oil traders on edge. Israel and Lebanon-based Hezbollah exchanged fire, upending the peace talks in Switzerland.

 

China Indexes and Stocks 

The Hang Seng Index dropped 1% to 23,691.01, and the mainland-focused CSI 300 Index increased 0.7% to 4,976.15. 

Financial services providers extended the previous week's losses after the central bank held rates steady. 

The Industrial and Commercial Bank of China decreased 0.4%, Agricultural Bank of China gained 0.2%, and China Construction Bank fell 0.5% in Hong Kong trading. 

Alibaba Group decreased 2.6%, Tencent Holdings declined 1.5%, and Meituan fell 1.4%.