FX.co ★ China Stocks Gain Despite Trade Escalations

The Shanghai Composite Index advanced by 0.6%, surpassing the 3,200 mark, whereas the Shenzhen Component surged by 3.2% to reach 9,840 on Thursday. This represents the third consecutive day of gains for mainland Chinese equities, despite heightened trade tensions with the United States. President Trump recently escalated measures by increasing tariffs on Chinese imports to 125%, following Beijing's imposition of an 84% retaliatory tariff on American goods. However, global markets found solace in Trump’s decision to delay the implementation of these new tariffs for 90 days, providing an opportunity for renewed trade talks. Additionally, Chinese stocks benefited from domestic policy initiatives. Beijing authorities have prompted state-owned financial institutions to augment their equity investments, while several publicly traded companies announced share buyback plans, thus boosting investor confidence. Concurrently, reports indicated declines in both consumer and producer prices for March, highlighting ongoing deflationary pressures and reinforcing the rationale for further monetary easing.