FX.co ★ China Stocks Drop on Renewed Trade War Fears

The Shanghai Composite index decreased by 0.62% to close at 3,865, while the Shenzhen Component fell by 2.54% to end at 12,895 on Tuesday. This shift reversed earlier session gains, as renewed concerns over a potential prolonged US-China trade dispute unsettled investors. Tensions intensified after China imposed restrictions on five American subsidiaries of Hanwha Ocean, in response to Washington's ongoing investigations into the Chinese maritime, logistics, and shipbuilding sectors. Additionally, the escalation continued with both countries introducing extra port charges on ocean shipping companies, though Beijing spared ships that were domestically constructed. Nonetheless, there is anticipation surrounding President Donald Trump's upcoming meeting with Chinese President Xi Jinping in South Korea later this month, intended to mitigate the discord. The sectors that led the downturn included technology, materials, and clean energy, with companies such as Eoptolink Technology, ZTE Corp, Zhongji Innolight, Contemporary Amperex, and China Northern Rare Earth experiencing declines ranging from 1.5% to 9%.