Briefing: China Holds Key Lending Rates Steady After Fed Cut

00:00

00:00/00:00

Listen to this article 1x

A clerk counts yuan and U.S. dollar bills. Photo: VCG

A run-down of key developments in China over the past 24 hours:

Interest rates: China’s benchmark lending rates remained unchanged Friday, defying expectations for a drop after the big U.S. interest rate cut this week. The one-year and five-year-plus loan prime rates (LPRs) held steady at 3.35% and 3.85%. The market had expected the rates to fall as the Federal Reserve’s reduction gave China more room to maneuver. The last time the LPRs were cut was in July.

You've accessed an article available only to subscribers

Subscribe today for just $.99.

VIEW OPTIONS

Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.

Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.

Share this article

Open WeChat and scan the QR code

DIGEST HUB

Digest Hub

Back

Explore the story in 30 seconds

China's benchmark lending rates stayed at 3.35% and 3.85%, despite expectations of a decline.
Alibaba's cloud unit reduced the prices of its large language models by up to 85%.
U.S.-listed Chinese stocks surged; the Nasdaq Golden Dragon China Index rose over 4%.

AI generated, for reference only

Who’s Who

Alibaba Group Holding Ltd.: Alibaba’s cloud unit has significantly reduced prices on three of its large language models by up to 85%, making entry-level model inference prices less than half those of ByteDance's Doubao. Alibaba Cloud's CTO mentioned these reductions align with similar moves by others like OpenAI, and are not viewed as initiating a price war.

ByteDance Ltd.: The article mentions ByteDance Ltd. in the context of large language models, noting that Alibaba’s cloud unit has reduced the price of querying its models to less than half the cost of ByteDance’s competing model, Doubao.

Miniso Group Holding Ltd.: Miniso Group Holding Ltd., a minimalist retailer, saw its stock soar more than 10% on Thursday. The jump occurred during the first full trading session after the Federal Reserve's interest rate cut, contributing to the overall rally of U.S.-listed Chinese companies.

XPeng Inc.: XPeng Inc., an electric-vehicle startup, saw its stock close more than 7% higher on Thursday. This increase came during the first full trading session after the Federal Reserve's rate cut, which led to a broader rally for U.S.-listed Chinese companies.

Nio Inc.: Shares of Nio Inc., an electric vehicle startup, closed more than 7% higher in Thursday's trading session following the Fed rate cut. The gain was part of a broader rally in U.S.-listed Chinese companies, as reflected by the Nasdaq Golden Dragon China Index increase of more than 4%.

JD.com Inc.: Shares of JD.com Inc., an e-commerce giant, rose more than 6% on Thursday during the first full trading session after the Federal Reserve's rate cut, contributing to a broader rally in U.S.-listed Chinese companies.

Bilibili Inc.: Bilibili Inc., an online video specialist, saw its stock rise more than 6% in the first full trading session after the Federal Reserve's rate cut, as part of a broader rally among U.S.-listed Chinese companies.

AI generated, for reference only

What Happened When