FX.co ★ China Stocks Slip on Trade Uncertainty

On Friday, the Shanghai Composite Index declined by 0.4%, dipping below the 3,270 mark, while the Shenzhen Component Index experienced a marginal loss of 0.1%, closing at 9,748. This downturn ended an eight-day upward trend for the Shanghai Composite as investors exercised caution due to persistent uncertainties surrounding Sino-US trade relations. Earlier in the week, China outlined prerequisites for resuming trade negotiations with the United States, emphasizing the need for respect, policy consistency, and a US negotiator fully supported by President Trump. In contrast, President Trump signaled a potential easing of trade tensions with China, expressing a desire not to escalate tariffs further and possibly reduce them in the future. Currently, China is subject to a significant 145% tariff on its exports, while it imposes a 125% duty on US imports in retaliation. Among the notable declines were Yonghui, which fell 4.5%, Beingmate with a 10% drop, and Shanghai Belling down by 3.8%. Despite Friday's setback, the Shanghai Composite is on track to achieve a weekly gain of approximately 1%, while the Shenzhen Component is expected to close the week with a roughly 1% loss.