FX.co ★ China Stocks Fall on Renewed Trade Uncertainty

On Friday, the Shanghai Composite Index declined by 0.47%, closing at 3,347, while the Shenzhen Component Index fell by 0.85%, ending at 10,041. This drop erased the gains seen in the previous session, largely due to renewed uncertainties surrounding trade, which dented investor confidence. US Treasury Secretary Scott Bessent remarked that the US-China trade discussions have reached an impasse, suggesting that any significant progress may necessitate direct dialogue between the countries' leaders. Further contributing to the cautious sentiment was a recent decision by a US appeals court to reinstate President Donald Trump’s reciprocal tariffs, overturning a previous federal court judgment that had declared them unlawful. Domestically, investors are now focused on the upcoming PMI data for May, which is expected over the weekend, for insights into how the manufacturing and services sectors are coping with increasing trade pressures. Market declines were primarily driven by significant losses in leading companies, including BYD Company, which fell by 2.5%, Contemporary Amperex with a 0.7% dip, and Kweichow Moutai, which decreased by 1.2%.