Shanghai, Jan 20, 2026, 05:27 GMT+8 — The market has now closed.
- China Mobile Limited Class A (600941) wrapped up the session up 0.23%, finishing at 96.50 yuan.
- Traders brace for China’s loan prime rate decision on Tuesday as tighter controls on leverage and fast trading loom.
- New GDP data showed growth slowed in the fourth quarter, keeping pressure on policymakers to think about easing.
China Mobile Limited Class A shares inched higher Monday, closing just under 96.5 yuan ahead of a key policy update in China. The telecom stock, listed in Shanghai, gained 0.23% to finish at 96.50 yuan. 1
Tuesday’s loan prime rate (LPR) update is in focus, influencing the bulk of new and current bank loans. The five-year LPR is especially crucial since it shapes mortgage costs. A Reuters poll shows unanimous expectations for the one-year and five-year rates to hold steady at 3.0% and 3.5%. Still, a few traders are eyeing a possible rate cut later in Q1. 2
Monday’s economic data stirred up debate. Official figures showed China’s economy grew 4.5% year-on-year in the fourth quarter, down from 4.8% in Q3. For the full year, growth hit 5.0%. Frederic Neumann, HSBC’s chief Asia economist, pointed out that “the high-frequency data numbers on retail sales… continue to highlight the ongoing challenges.” 3
After a rapid jump in onshore shares, regulators are stepping up controls. Starting Jan. 19, China’s exchanges will raise the minimum margin requirement for new borrowings from 80% to 100%. Investors will now have to cover their loans entirely with cash, a clear effort to curb leveraged trading. 4
The securities regulator is tightening controls on speed once more. Sources told Reuters that brokerages must remove client-dedicated servers from exchange data centres. This step aims squarely at high-frequency trading—the lightning-fast, algorithm-driven strategies chasing milliseconds for execution edge. Shane Oliver, chief economist at AMP, commented, “They do want to keep the markets focused on investment, as opposed to speculation.” 5
China Mobile’s Class A shares traded between 95.75 and 96.75 yuan on Monday, hovering near the lowest point in their 12-month span, according to Investing.com. The firm is set to report earnings on March 27. 6
In the previous session, the picture was mixed among peers. China Telecom’s shares on the Shanghai exchange dipped 0.5%, closing at 5.94 yuan. China Unicom held steady at 5.15 yuan. 7
Broker research is turning more cautious on state carriers’ near-term prospects, even as they highlight “computing power” and other growth areas. Goldman Sachs downgraded China Telecom and China Unicom to neutral, a note on Aastocks shows, citing challenges in core services and slower expansion in newer segments. The bank also anticipates capex will shift more toward AI infrastructure. 8
The downside is clear. Slower domestic demand and a persistently weak property sector could drag on usage and corporate spending. At the same time, tighter leverage controls and fast trading might sap liquidity during market sell-offs. Geopolitical tensions over telecom gear add to the strain: China’s foreign ministry warned the EU on Monday not to undermine Chinese firms’ investment confidence, after reports that Brussels plans to phase out suppliers like Huawei and ZTE from critical infrastructure. 9
The next major event is just around the corner: the PBOC will release January loan prime rates on Tuesday. Traders will also watch closely to see if regulators extend restrictions beyond Monday’s limits on leverage and servers, looking for signs that the rules are still evolving.
