FX.co ★ Shanghai Stocks Hit 3-Month Low

The Shanghai Composite Index slipped 0.2% to 3,908 on Tuesday, its lowest level in three months, while the Shenzhen Component Index edged up 0.3% to 14,555, rebounding from a one-month low. Chinese equities were mixed as investors evaluated the country’s growth prospects ahead of key economic releases. Second-quarter GDP growth is forecast to slow to 4.5% year-on-year from 5% in the first quarter, keeping the expansion near the lower bound of Beijing’s 2026 target range of 4.5% to 5%. The moderation reflects soft consumer spending, a protracted property slump, and muted investment outside priority areas such as high-tech manufacturing. Even so, Premier Li Qiang indicated that further policy support remains on the table, and this month’s Politburo meeting may offer additional signals on forthcoming measures. On the downside, China Construction Bank (-1.7%), SMIC (-5.1%), and Zijin Mining (-1.3%) were among the notable laggards. In contrast, Zhongji Innolight (1.2%), Eoptolink Technology (3.8%), and NAURA Technology (1.1%) recorded gains.