FX.co ★ China Stocks Fall Despite Strong Data

The Shanghai Composite Index declined by 0.6% to approximately 3,250 and the Shenzhen Component Index fell by 1% to 9,755 on Wednesday, effectively ending a six-day streak of gains. This downturn was largely attributed to escalating trade war concerns, which overshadowed positive economic indicators. President Donald Trump has initiated an investigation into the potential imposition of new tariffs on critical mineral imports, many of which originate from China, thereby heightening worries about further strain on U.S.-China relations. Despite President Trump's call for China to re-engage in negotiations, Chinese officials have not shown any signs of concession. On the positive side, Q1 economic data from China surpassed expectations, buoyed by strong policy stimulus measures. Key metrics such as retail sales, industrial production, and fixed asset investment outperformed March forecasts. Nevertheless, uncertainties surrounding trade continue to cast a shadow over the broader economic outlook. Companies such as Luxshare Precision (-3.2%), BYD Company (-3.1%), and Victory Giant (-4.5%) were among the major stocks that saw declines.