Chinese stocks surged to their highest levels in four months on Monday, following the People’s Bank of China’s (PBoC) slashing a key interest rate.
The surprise move reignites hopes for additional stimulus in the world’s second-largest economy.
The iShares China Large-Cap ETF (NYSE:FXI) — which tracks major Chinese firms like Alibaba Group Holding Limited (NYSE:BABA), Tencent Holding Ltd. (OTCPK: TCEHY), JD.com Inc. (NASDAQ:JD), and Baidu Inc. (NYSE:BIDU) — is up more than 2% as of 11:20 a.m. ET in New York. It’s a level not seen since late May.
PBoC Cuts Rates, Inject Liquidity
On Sept. 23, the People’s Bank of China unexpectedly reduced the 14-day reverse repurchase rate by 10 basis points to 1.85%, down from 1.95%.
Additionally, the ...
