FX.co ★ China Stocks Fall Amid Lingering Trade Uncertainty

On Thursday, the Shanghai Composite Index decreased by 0.68% to end at 3,381, while the Shenzhen Component Index saw a decline of 1.62%, closing at 10,186. This pullback erased gains from the previous trading session as ongoing trade uncertainties continued to affect investor sentiment. Despite an agreement between Beijing and Washington for a 90-day tariff reduction, experts have noted that the lack of a comprehensive, long-term trade pact still casts a shadow over China’s economic future. Meanwhile, US officials have reiterated their intention to lessen the country's dependence on Chinese imports, with trade discussions set to proceed in the weeks to come. The market's pessimism was further fueled by April's credit figures, which indicated a more significant than anticipated drop in new bank loans in China, reflecting subdued credit demand in light of continuing trade tensions. The technology sector led the market downturn, experiencing considerable declines, including East Money falling by 3.2%, Avic Chengdu by 3.7%, and Zhongji Innolight by 4.3%.