FX.co ★ China Stocks Slip Amid Mixed PMI Data

The Shanghai Composite Index declined 0.9% to below 4,090, while the Shenzhen Component slipped 0.2% to 13,995 on Wednesday, extending the previous session’s losses as investors digested mixed PMI readings. Official data showed that China’s manufacturing and services sectors contracted for a second straight month in February, with the extended Lunar New Year holiday weighing on economic activity. By contrast, a private survey indicated that both manufacturing and services activity picked up last month. Investors are now focused on the upcoming annual “Two Sessions” meetings, where policymakers are expected to set growth targets and outline key policy priorities. On the global front, equity markets remain under pressure as the escalating conflict in the Middle East drives energy prices higher and revives inflation concerns. Notable decliners included Zhongji Innolight (-2.4%), Eoptolink Technology (-1.5%), and Zijin Mining (-1.5%).