FX.co ★ China Stocks Edge Higher as Weak PMI Fuels Stimulus Hopes

On Monday, the Shanghai Composite Index experienced a modest increase of 0.2%, reaching approximately 3,430, thereby halting a two-day decline. This uptick was driven by weak manufacturing data, which heightened anticipation for further economic stimulus. Official reports revealed that China's manufacturing sector faced contraction for the third consecutive month in June due to an escalating price war, subdued consumer demand, and the impact of increased US tariffs. Contrarily, the non-manufacturing sector, encompassing services and construction, saw growth accelerate to a three-month high. On the international trade stage, Beijing announced on Friday the finalization of a new agreement with Washington. According to this deal, China will assess export applications governed by export control regulations, while the US agreed to retract a variety of restrictive measures against Chinese firms. Among the standout performers in the trading session were Zhongji Innolight with a 6.7% increase, Eoptolink Technology up by 5.5%, Shenzhen Forms rising by 2.1%, Hengbao Co surging by 10%, and Luxshare Precision advancing by 2.7%.