FX.co ★ China Stocks Fall on Geopolitical Tensions

On Monday, the Shanghai Composite index declined by 0.46%, concluding the session at 3,972. Simultaneously, the Shenzhen Component dipped 0.11% to 13,202, further extending losses from the previous trading session. Investor sentiment was impacted by escalating geopolitical tensions between China and Japan. Recently, Japanese Prime Minister Sanae Takaichi cautioned that any Chinese military action against Taiwan could pose a threat to Japan's national security and might necessitate a military response. In retaliation, Beijing advised Tokyo against any interference concerning Taiwan and issued warnings to Chinese citizens regarding travel to Japan. The market witnessed significant losses among major firms, with Contemporary Amperex falling by 3.3%, Sungrow Power by 0.7%, Cambricon Technologies by 1.7%, Shannon Semiconductor by 2.1%, and Zhejiang Century experiencing a sharp drop of 9.2%. Although no major economic data releases are anticipated for China this week, the People's Bank of China is expected to maintain stable loan prime rates.