FX.co ★ China Stocks Fall for Second Session

On Monday, the Shanghai Composite index slipped by 0.5% to approximately 3,970, while the Shenzhen Component index experienced a slight decline of 0.1%, settling at 13,200. This downturn extended losses from the previous trading session, as concerns mounted over decelerating economic growth and persistent issues within the property sector, impacting investor confidence. Recent economic indicators, such as fixed asset investment, industrial production, and retail sales, have all fallen short of expectations. Additionally, escalating tensions between China and Japan, triggered by remarks from Prime Minister Sanae Takaichi concerning Taiwan, further strained the markets. Significant declines were observed in companies like Contemporary Amperex (-3.7%), Sungrow Power (-1.1%), TBEA Co (-1.9%), Suzhou TFC Optical (-4%), and Aluminum Corp (-3.9%). Looking ahead, no major economic announcements are anticipated from China this week; however, it is expected that the People's Bank of China will maintain current loan prime rates.