FX.co ★ China Stocks Muted on Mixed Data

On Monday, Mainland Chinese stocks remained largely unchanged, with the Shanghai Composite concluding at 3,368 points and the Shenzhen Component remaining stable at 10,171. Investors evaluated a series of mixed economic data, noting that April's retail sales growth had slowed and failed to meet expectations, highlighting weak domestic consumption and sluggish income growth. In contrast, industrial production exceeded forecasts, despite a deceleration from March's levels, and the unemployment rate saw a slight decline. Investor sentiment turned cautious as China characterized recent trade discussions with the U.S. as "positive" yet did not specify future actions. Meanwhile, President Trump hinted at a potential call with President Xi. Market participants are now keenly awaiting forthcoming PBOC decisions regarding key lending rates, anticipating a 10 basis point reduction in both the one-year and five-year loan prime rates. Among the notable stock performances, Avic Chengdu rose by 3.4%, Naura Technology by 1.5%, and Guangdong Haid by 1.3%. Conversely, Kweichow Moutai experienced a decline of 2.2%, and BYD Company fell by 1.6%.