FX.co ★ China Stocks Dip on Mixed Data

The Shanghai Composite Index declined by 0.3%, dropping below 3,360 points, while the Shenzhen Component Index slipped by 0.6%, reaching approximately 10,120, as of Monday. This marks the third consecutive day of losses for Chinese mainland equities, as investors assessed new economic data. April's retail sales growth underperformed, heightening concerns regarding sluggish consumer demand. Conversely, industrial output, despite slowing from March, surpassed forecasts. Fixed-asset investment figures were slightly below the anticipated levels, yet a marginal decrease in the unemployment rate indicated some labor market resilience. Investor sentiment also turned cautious following China's recent comments on trade discussions with the U.S., describing them as “good,” albeit noncommittal about future actions. Meanwhile, former U.S. President Trump mentioned the possibility of a call with President Xi. Looking ahead, investors are closely monitoring upcoming People's Bank of China (PBOC) decisions concerning key lending rates, such as the one-year and five-year loan prime rates. Among the notable stock decliners were Kweichow Moutai (-2.4%), BYD Company (-2.5%), and Foxconn Industrial (-2.4%).