FX.co ★ China Stocks Fall as Beijing Holds Back on Stimulus

The Shanghai Composite edged down by 0.2%, closing at 3,288, while the Shenzhen Component fell by 0.62% to 9,855 on Monday, continuing its downward trend from the previous trading day. Investor confidence was dampened as China reiterated its assurance in achieving a full-year growth target of approximately 5% but refrained from implementing immediate stimulus measures. Instead, authorities indicated plans to introduce new pro-growth strategies in the second quarter, reflecting a cautious approach in evaluating the timing and impact of potential trade disruptions. Additionally, uncertainty surrounding US-China trade talks lingered, despite President Donald Trump expressing willingness to reduce tariffs on Chinese imports and Beijing's decision to exempt select US goods from its 125% tariff imposition. Leading the declines were major stocks such as BYD Company, which dropped 2.9%, Eoptolink Technology, which declined 4.2%, and Luxshare Precision, which fell by 2.1%.