FX.co ★ China Stocks Slip as Automakers Weigh on Market

The Shanghai Composite dipped slightly by 0.05%, finishing at 3,347, while the Shenzhen Component declined by 0.41%, closing at 10,091 on Monday. This marked the third straight session of losses for mainland Chinese stocks, driven by pressure on automakers. Notably, BYD Company shares plummeted by 5.9% following reports of significant price reductions in a recent promotional effort. Other Chinese automotive manufacturers followed suit, including Seres Group, which saw a 4.2% decrease. The downturn also affected Hong Kong-listed electric vehicle stocks, such as Geely Auto, Li Auto, NIO, Xpeng, and Xiaomi. Market sentiment took another hit after US President Donald Trump threatened to enact a 25% tariff on iPhones sold in the US that aren't produced domestically, affecting Chinese suppliers integral to Apple's supply chain. Meanwhile, investors are closely observing the effects of a rising yuan on domestic stocks. In this context, sectors like consumer discretionary, real estate, and brokerage firms are seen as potential gainers in an environment of currency appreciation.