FX.co ★ China Stocks Fall for Second Session

On Friday, the Shanghai Composite Index declined by 0.94%, ending the trading session at 3,348, while the Shenzhen Component saw a decrease of 0.85%, closing at 10,132. This marked the second consecutive session of declines for mainland stock markets, as persistent selling pressure overshadowed positive news in Sino-US trade relations. Despite a diplomatic dialogue between China and the United States, where Vice Foreign Minister Ma Zhaoxu and US Deputy Secretary of State Kurt Campbell agreed to maintain open communications, the anticipated improvement in geopolitical relations did not significantly boost market sentiment. Concurrently, the People’s Bank of China reinforced its support for credit growth amidst ongoing economic challenges by injecting 500 billion yuan into the financial system through its one-year medium-term lending facility. Notable declines impacting the indices included Contemporary Amperex, which fell 1.2%, East Money Information, which dropped 2.1%, and Kunlun Tech, with a 2.5% decrease.