FX.co ★ China Stocks Slip on Measured Policy Support

On Tuesday, the Shanghai Composite Index dipped by 0.2%, falling below the 3,920 mark, thus concluding a two-day upward trend. This shift occurred following China's Politburo session, which focused on enhancing domestic demand by 2026 and hinted at a cautious stance towards economic stimulus. Chinese authorities weigh the balance between adopting a more relaxed fiscal and monetary strategy and maintaining financial stability. Investors are now turning their attention to the forthcoming Central Economic Work Conference, anticipating the policymakers' announcements on growth targets and policy frameworks for the next year. Among the prominent stocks that declined were Zhejiang Sanhua, falling 0.9%, East Money Information with a 1.3% decrease, Contemporary Amperex down by 0.9%, Zhongfu Straits dropping 2.5%, and Zijin Mining declining by 3.8%. In a separate development, U.S. President Donald Trump approved an agreement that allows Nvidia to recommence the distribution of its H200 AI chips to China, noting that Chinese President Xi Jinping "responded positively" to the arrangement.