FX.co ★ China Stocks Rise on Signs of State-Backed Market Support

On Friday, the Shanghai Composite Index advanced by 0.45%, closing at 3,238, while the Shenzhen Component Index saw an increase of 0.82%, reaching 9,834, marking the fourth consecutive session of gains. This upward trend is largely driven by optimism surrounding potential state-supported equity purchases, which helped alleviate concerns tied to the escalating Sino-U.S. trade tensions. In recent efforts to stabilize domestic markets, Beijing has urged state-owned financial institutions to boost their investments in equities. Additionally, the announcement of numerous share buybacks from publicly listed companies has further bolstered investor confidence. On the other hand, the Trump administration has confirmed that cumulative tariffs on Chinese goods have soared to 145%, igniting fears of potential retaliatory actions from Beijing, which has already levied an 84% tariff on U.S. imports. Furthermore, reports indicate that China is preparing new countermeasures targeting American businesses, while concurrently strengthening its trade partnerships with the European Union. Sectors focused on growth, particularly technology and new energy, spearheaded the day's gains.