China maintains lending rate as investors await economic stimulus

On Monday, April 28, 2025, Asian equities displayed a mixed performance with India and Malaysia showing gains while Pakistan and Mainland China lagged behind. In the Chinese market, growth-focused stocks underperformed, and the Politburo meetings held recently did not introduce new stimulus measures that could decisively influence market dynamics. Despite this, the meetings had a strong focus on the economy, indicating potential strategic discussions about upcoming support for various sectors. AI-related stocks experienced an uptick following indications that greater government support for the industry might be forthcoming. Additionally, tourism stocks performed well amid conversations about enhanced tax rebates designed to attract foreign visitors to China, which could provide a significant boost to the tourism sector. The release of economic data beginning on Tuesday night from April is anticipated, including Purchasing Managers' Index (PMI) figures which are expected to reflect changes in domestic ordering patterns ahead of new tariff measures. With ongoing tensions regarding trade agreements, there are indications that talks might soon yield new tariff reductions for 18 countries, yet this is contingent upon China offering substantial concessions. The People's Bank of China (PBOC) held the medium-term lending facility rate steady, a decision that has adversely impacted the real estate sector. Later in the week, as further economic indicators are revealed, market observers expect to gain clearer insights into the economic stability and potential growth within China's framework amid global pressure from U.S. tariffs impacting about 2.3% of China's GDP.