Shanghai Composite closes at 2,907.82, worst level since Aug. 2016

Shanghai Composite closes at 2,907.82, worst level since Aug. 2016

PBOC stands pat on rates, fails to follow Fed as usual

The People’s Bank of China on Thursday decided not to follow the U.S. Federal Reserve in raising interest rates, defying expectations that the Chinese policy makers would follow their usual pattern and respond with small hikes to Fed moves. The Chinese central bank’s decision to stand pat came as data for May indicated the economy is losing steam, with readings on retail sales and fixed asset investments both missing forecasts. Hong Kong’s Hang Seng Index dropped 1%, while the Shanghai Composite Index slipped 0.2%. The Fed on Wednesday lifted interest rates for the second time this year and hinted another two hikes could be on the cards later in 2018.

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