PBoC Holds Loan Prime Rates Steady, Economy Grows 5%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Source: seekingalpha
- Rate Policy Stability: The People's Bank of China maintained the one-year and five-year loan prime rates at 3.0% and 3.5%, respectively, extending an eight-month streak of policy stability, which underscores its commitment to market expectations and aims to ensure smooth economic operations.
- Economic Growth Data: China's economy expanded by 4.5% year-on-year in Q4 2025, marking the slowest growth in three years; however, the full-year growth reached 5%, meeting government targets, reflecting both challenges and achievements in economic recovery.
- Market Reaction: On Tuesday, the Shanghai Composite fell 0.3% to around 4,100, while the Shenzhen Component dropped 1.7% to 14,050, indicating cautious investor sentiment influenced by the unchanged interest rates and economic outlook.
- Currency Stability: The offshore yuan steadied at around 6.96 per dollar, close to 32-month highs, suggesting strong market confidence in the yuan amid the PBoC's decision to keep lending rates unchanged, potentially aiding in attracting foreign investment.
Analyst Views on CAF
Wall Street analysts forecast CAF stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CAF is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Analyst Rating
0 Buy
0 Hold
0 Sell
Current: 18.110
Low
Averages
High
Current: 18.110
Low
Averages
High
No data
About CAF
Morgan Stanley China A Share Fund, Inc. (the Fund) is a non-diversified, closed-end management investment company. The Fund's investment objective is to seek capital growth. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in A-shares of Chinese companies listed on the Shanghai and Shenzhen Stock Exchanges. The Fund also invests in warrants or other strategic transactions. The Fund also invests up to 20% of its assets in other types of investments, including B-shares of companies listed on the Shanghai and Shenzhen Stock Exchanges, H-shares of companies incorporated in mainland China and listed on the Hong Kong Stock Exchange, shares of red chip companies with controlling Chinese shareholders that are incorporated outside mainland China and listed on the Hong Kong Stock Exchange and other exchanges. The Fund's investment adviser is Morgan Stanley Investment Management Inc. and its sub-advisor is Morgan Stanley Investment Management Company.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
