At close of trade, the benchmark Shanghai Composite Index declined 1.16%, or 37.62 points, to 3,199.92. The Shenzhen Composite Index, which tracks stocks on China's second exchange, dropped 2.34%, or 49.11 points, to 2,051.79. The blue-chip CSI300 index decreased by 0.94%, or 38.24 points, to 4,027.12.
The People's Bank of China (PBoC) maintained its medium-term policy rate on Thursday after steadily lowering lending rates earlier this year. The People's Bank of China kept the rate for one-year medium-term lending facility loans (MLF) unchanged at 2.75%, while partially rolling over some maturing loans.
The move was likely driven by increased depreciation in the yuan, which plummeted to two-year lows in recent weeks. Today's move indicates that the PBoC is looking to find a balance between shoring up economic growth and allowing further depreciation in the yuan , which is also facing headwinds from rising U.S. interest rates.
Five of China's largest banks cut personal deposit rates from Thursday, according to information available on the lenders' mobile apps, a move that could ease the pressure on their margins after recent lending rate cuts to revive the economy.
Shares of Chinese property developers rallied on hopes that cities in the mainland will roll out more relaxation measures to boost the embattled sector.
CURRENCY NEWS: China's yuan appreciated against the dollar on Thursday, after firmer-than-expected official midpoint fixings and a pause in the central bank's monetary easing efforts. Prior to market opening, the People's Bank of China (PBOC) set midpoint rate CNY=PBOC at 6.9101 per dollar, 15 pips firmer than the previous fix of 6.9116. In the spot market, the onshore yuan CNY=CFXS opened at 6.9460 per dollar and was changing hands at 6.9680 per dollar and was changing hands at 6.9666 at midday, 36 pips weaker than the previous late session close.
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