FX.co ★ China Stocks Mixed Amid Weak PMI Data

Mainland Chinese markets showed varied performance on Wednesday, with the Shanghai Composite edging down by 0.2% to approximately 3,280, while the Shenzhen Component rose by 0.5% to 9,895. Investor sentiment was dampened by discouraging PMI data, which underscored the increasing pressure from the ongoing trade conflict with the United States. Official figures revealed that manufacturing activity contracted more significantly than expected in April, and growth in the services sector also fell short of predictions. This data intensified worries about the broader economic impact of trade tensions, particularly given the uncertainty over whether Beijing and Washington are actively negotiating. To date, Chinese authorities have opted against implementing aggressive stimulus measures, favoring a more cautious approach to the effects of tariffs. Financial stocks experienced declines, with China Merchants (-2.7%) and ICBC (-2.2%) among those noticeably affected. In contrast, high-growth technology and consumer sectors outperformed, which helped mitigate broader market losses.