FX.co ★ China Stocks Slip on Trade Uncertainty

On Monday, the Shanghai Composite marginally dipped by 0.15%, falling below the 3,470 mark, while the Shenzhen Component experienced a 0.6% decrease, ending at 10,450. This pullback in mainland stocks occurred as some of last week's gains were surrendered due to ongoing trade uncertainties. Investor sentiment was dampened following US President Donald Trump's announcement that comprehensive reciprocal tariffs are scheduled to be implemented on August 1. Treasury Secretary Scott Bessent had previously indicated that should countries fail to secure a trade agreement with the US by that date, tariffs would reset to April 2 levels. To date, only China, the UK, and Vietnam have successfully negotiated partial trade deals with Washington. Investors are also keenly anticipating new data on inflation and trade from China this week, which could provide insights into how the evolving trade relationship between the US and China is affecting the world's second-largest economy. Among the significant declines, Zhongji Innolight fell by 4.1%, Victory Giant slipped by 1.5%, and Eoptolink Technology decreased by 1.7%.