FX.co ★ China Stocks Slip on Escalating Sino-US Tensions

The Shanghai Composite dipped slightly by 0.2%, falling below the 3,220 mark, while the Shenzhen Component decreased by 0.4% to 9,715 on Friday. This decline interrupted a three-day uptrend, primarily due to growing concerns about an escalating trade conflict between China and the United States. The Trump administration has announced that the cumulative tariffs imposed on Chinese goods now stand at 145%, increasing the likelihood of Beijing implementing further retaliatory measures. China, in response, has imposed an 84% tariff on U.S. imports. Furthermore, there are reports suggesting that China is gearing up to introduce additional counteractions against American companies, while also aiming to strengthen trade, investment, and industrial partnerships with the European Union. Prior to this dip, mainland stocks experienced a rally, bolstered by Chinese authorities encouraging state-owned financial entities to increase their equity investments and a series of share buyback announcements from publicly listed companies. Among the prominent gainers were China Greatwall, which rose by 2.4%, Zijin Mining by 2.3%, Unigroup Cuoxin by 1.7%, SG Micro soaring by 11.1%, and Wangfujing Group gaining 2.5%.