FX.co ★ China Stocks Fall on Geopolitical Tensions, Policy Concerns

The Shanghai Composite Index declined by 0.79% to settle at 3,362, while the Shenzhen Component Index decreased by 1.21% to close at 10,052 on Thursday. Mainland equities hit their lowest point in over two weeks, driven by escalating geopolitical tensions and the absence of fresh policy announcements, which dampened investor confidence. The market was rattled by news that U.S. officials are contemplating a potential military action against Iran, possibly as soon as this weekend, stoking fears of heightened instability across the Middle East. Domestically, the lack of definitive policy guidance from top regulators at the Lujiazui Forum further added to investor uncertainty. Market participants are now eagerly anticipating the July Politburo meeting for clearer signals on economic stimulus measures. Focus also shifts to the People's Bank of China's upcoming loan prime rate decision on Friday, with widespread expectations that there will be no rate alteration. Among the notable stocks that declined were Shenzhen Forms (-2.1%), East Money Information Co. (-2.7%), Hengbao Co. (-5.9%), Lakala Payment Corp. (-6.3%), and GCL Energy Technology Co. (-8.4%).