FX.co ★ China Stocks Struggle Amid Economic Concerns

On Wednesday, the Shanghai Composite saw a slight decrease of 0.04%, settling at 3,369, while the Shenzhen Component experienced a marginal decline of 0.05%, reaching 10,644. This downturn reversed earlier gains, as ongoing economic uncertainties and the potential for upcoming US reciprocal tariffs dampened market sentiment. S&P Global Ratings recently revised its 2025 GDP growth forecast for China downward to 4.1%, compared to the previous estimate of 4.8%, highlighting concerns that stimulus measures might be insufficient to counteract the effects of new US tariffs. Concurrently, Beijing has established a 5% GDP growth target and increased its fiscal deficit to its highest level in three decades, implementing strategies to stimulate consumption and bolster domestic demand. Among the most significant decliners were China Merchants Bank, which fell by 5.4%, Zijin Mining with a 1.1% decline, IEIT Systems dropping 2.9%, CMOC Group sliding 1.2%, and Contemporary Amperex decreasing by 1%.