FX.co ★ China Stocks Decline Amid Lingering Trade Uncertainty

The Shanghai Composite Index decreased by 0.5% to fall below the 3,390 mark, while the Shenzhen Component Index saw a decline of 0.8% to settle at 10,270 on Thursday. This downturn offset some of the gains made in the previous session as ongoing trade uncertainties continued to dampen investor sentiment. While there is an interim reprieve in the form of a 90-day tariff reduction agreement between Beijing and Washington, analysts warn that the lack of a comprehensive long-term trade agreement still casts a shadow over China's economic prospects. U.S. officials have also stressed their intent to lessen dependency on imports from China, further adding to market caution. Trade negotiations between the two nations are anticipated to proceed in the upcoming weeks as they work towards achieving a more extensive agreement. In a positive development, China has lifted its export ban on rare earths targeting U.S. entities, suggesting a potential easing of trade hostilities. Nonetheless, technology stocks suffered the most significant declines, with East Money dropping by 2.3%, Avic Chengdu by 4.9%, Victory Giant by 3.8%, Zhongji Innolight by 1.4%, and Talkweb Information by 3.2%.