China stocks rose on Wednesday on expectations of lower borrowing costs at home and the United States, with a resumption of trade talks between Beijing and Washington aiding risk appetite.
China's blue-chip CSI300 Index gained 0.5% to 3,910.08, while the Shanghai Composite Index rose 0.3% to 2,985.65860. The U.S. Federal Reserve is widely expected to lower key borrowing costs by 25 basis points later on Wednesday. Although the People's Bank of China (PBOC) kept the rate unchanged on one-year loans from its medium-term lending facility (MLF) on Tuesday, analysts still expect banks to set Loan Prime Rates (LPRs) lower at Friday's monthly fixing.
A cut in LPRs - China's benchmark rates for new loans - could lead to lower borrowing costs for consumers and companies in a slowing economy.
Source : Reuters