FX.co ★ China Stocks Fall for Second Session

On Monday, the Shanghai Composite Index experienced a minor decline of 0.1%, settling around 3,995, while the Shenzhen Component Index decreased by 0.4% to 13,350. This marked the second consecutive session of losses for mainland Chinese stocks, attributed to stronger-than-anticipated inflation data that diminished expectations for immediate policy interventions. Over the weekend, data revealed that consumer prices in China unexpectedly increased by 0.2% in October, recovering from a 0.3% decrease in September, contrary to the forecasts which anticipated no change. Meanwhile, producer prices fell 2.1% last month, representing the least sharp decline in 14 months. This data followed Friday’s trade figures, which highlighted an unforeseen drop in exports alongside a deceleration in imports. The decrease was most pronounced in the tech and clean energy sectors, with significant declines observed in TBEA Co (-2%), Sungrow Power (-3.5%), Foxconn Industrial (-5.7%), Eoptolink Technology (-5.8%), and Zhongji Innolight (-4.2%).