FX.co ★ China Stocks Drop Amid Weak Economic Data

The Shanghai Composite Index experienced a decline of 0.97%, closing at 3,990, while the Shenzhen Component Index fell by 1.93%, settling at 13,216 on Friday. Mainland stocks retreated from their ten-year peaks, influenced by disappointing economic data that dampened market sentiment. Notably, fixed asset investment—which encompasses real estate—shrank by 1.7% over the first ten months of the year. This was a steeper decline compared to the 0.5% decrease observed in September and marked the second contraction since August 2020. Additionally, both industrial production and retail sales decelerated in October, highlighting the slowing pace of economic activity. Further uncertainty arose from reports that China's top securities regulator, Wu Qing, has expressed his intention to step down. Significant losses were recorded among leading companies, including Gigadevice Semiconductor (down 9.6%), Zhongji Innolight (down 3.9%), Eoptolink Technology (down 4.7%), Foxconn Industrial (down 5.5%), and Shannon Semiconductor (down 9.5%). Over the course of the week, the Shanghai and Shenzhen indexes recorded declines of 0.18% and 1.4%, respectively.