China's Market Tango: Stocks Surge as Lending Rates Slashed

China's stock market rose on Monday as anticipated rate cuts were implemented by Beijing. The CSI300 and Shanghai Composite indexes saw slight increases, while Hong Kong's Hang Seng Index decreased. The rate reductions follow recent market volatility, attempting to recover previous gains lost by investor caution.

China's stock market opened with gains on Monday after Beijing cut its benchmark lending rates as expected. The CSI300 Index rose by 0.6%, and the Shanghai Composite Index gained 0.4%, reflecting a strategic move by the government to boost the economy.

Meanwhile, Hong Kong's Hang Seng Index experienced a 0.4% decline, indicating a mixed response in Asian markets. The decision to lower both the one-year and five-year loan prime rates by 25 basis points each was anticipated during the monthly rate fixing.

This adjustment follows a significant drop in China's stock market, which had descended by roughly 11% from its October peak due to recent investor caution that eroded September's gains spurred by earlier stimulus measures from Beijing.

(With inputs from agencies.)