---
title: "China Stocks Fall as PBOC Holds Rates"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/273021492.md"
description: "China's stock market saw declines as the Shanghai Composite fell 0.3% and the Shenzhen Component dropped 1.7% after the PBOC maintained key policy rates. This decision left investors without a market boost amid rising regulatory scrutiny and increased margin requirements. Despite a year-on-year economic growth of 4.5% in Q4 2025, the slowest in three years, the full-year growth met the government's target at 5%. Technology stocks were notably affected, with significant losses from Eoptolink, Guangzhou Haige, Zhongji Innolight, and Zhejiang Sanhua."
datetime: "2026-01-20T02:42:25.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/273021492.md)
  - [en](https://longbridge.com/en/news/273021492.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/273021492.md)
---

# China Stocks Fall as PBOC Holds Rates

The Shanghai Composite fell 0.3% to around 4,100 while the Shenzhen Component dropped 1.7% to 14,050 on Tuesday, erasing gains from the previous session after China’s central bank kept key policy rates unchanged in a widely expected move, providing no impetus for the markets.

Investors also continued to grapple with increasing regulatory scrutiny after trading activity surged to record levels, with authorities so far raising margin requirements and removing servers operated by high-frequency trading firms from exchange data centers.

However, Beijing has signaled plans to introduce more fiscal and monetary stimulus this year to boost growth.

Data released Monday showed China’s economy expanded 4.5% year-on-year in Q4 2025, the slowest pace in three years, though full-year growth reached 5%, meeting the government’s target.

Technology stocks led the losses, with Eoptolink (-6.3%), Guangzhou Haige (-8.5%), Zhongji Innolight (-4.2%) and Zhejiang Sanhua (-1.3%) among the biggest decliners.

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