FX.co ★ China Stocks Slip on Trade Uncertainty

On Friday, the Shanghai Composite Index saw a decline of 0.11%, closing at 3,277 and ending an eight-day winning streak. This downturn was driven by investor wariness over the persistent uncertainty surrounding Sino-US trade relations. Earlier in the week, Beijing outlined prerequisites for resuming negotiations with the United States, highlighting the need for respect, consistent policies, and a clearly appointed US negotiator with full authority from President Trump. Concurrently, President Trump suggested a potential softening of trade tensions, expressing his reluctance to increase tariffs further and hinting at possible future reductions. Currently, China is subject to a 145% tariff on its exports, while it imposes a 125% duty on US imports in retaliation. Among the noteworthy decliners were Yonghui, which fell by 4.7%, Cambricon, down by 1.1%, and Shanghai Belling, dropping by 5%. Despite the setback on Friday, the Shanghai Composite achieved a 1.19% increase over the week, marking its first weekly gain in five weeks.