— This is the script of CNBC's news report for China's CCTV on November 24, Monday.
Welcome to the CNBC Business Daily.
The Chinese central bank's rate cut took markets by surprise.
It's the first such move in 2 years and and lowers the 1 year benchmark lending rate by 40 basis points to 5.6%.
The 1 year deposit rate was also trimmed by 25 basis points to 2.75%
But this move may not be a one-hit-wonder.
Bill Adams, Senior International Economist at PNC, says the move is intended to keep Chinese monetary policy neutral.
[BLL ADAMS / Senior International Economist, PNC] "Really, you can take the PBOC at face value. It's keeping monetary policy neutral. Inflation has fallen in China and so the real interest rate with lower inflation and a lower nominal interest rate is more or less unchanged from where it was a year ago. I think the rate cut is not going to spur a much faster credit growth."
Meantime -- One analyst says this could lift stocks in the near term and put a bottom to copper and oil prices through year-end.
[JOHN KOSAR / President, Asbury Research] "Actually, after the news came out of China on Friday here in the States, all the European indexes actualy rallied, indicating that it should make some of the growth factors in the commodities do better. Copper and Oil. We're actually watching copper and oil prices to potentially put in a bottom here between now and the end of the year."
Investors hitting the BUY button after that rate cut from the PBOC.
The Shanghai composite surging to a 3 year high…
Investors also piling into the Shanghai-Hong Kong stock connect, filling up a fifth of the Northbound quota in just 1 hour of trade.
Martin Lakos spoke to CNBC earlier to discuss how this would affect the regional market, especially Australia.
[MARTIN LAKOS / Division Director, Macquarie Private Wealth] "You've clearly seen a reaction by markets around the region today. In fact in our own market, we've seen a very significant kick up in the materials and energy space that had been sold down pretty heavily through October and yet to recover. Materials now down by about 3.3% today with BHP really forging ahead, along with Fortescue. So there's clearly some anticipation of a pick up in demand potentially for commodities over the next couple of quarters."
I'm Chen Qian, reporting from CNBC's Asian headquarters