FX.co ★ China Stocks Extend Gains Amid Trade Uncertainty

On Thursday, the Shanghai Composite Index experienced a modest increase of 0.23%, ending the day at 3,384 points. Simultaneously, the Shenzhen Component Index saw a more robust rise of 0.58%, reaching 10,204 points. These gains marked the third consecutive session of growth for mainland Chinese stocks. However, the overall upward momentum was tempered by market caution due to increasing uncertainties surrounding Sino-US trade relations. In a statement on Wednesday, US President Donald Trump expressed skepticism about reaching a trade agreement with Chinese President Xi Jinping, causing hopes for a breakthrough to wane, despite prior indications of potential discussions between the two leaders this week. The tensions were exacerbated by China's persistent restrictions on the export of rare earth materials and its allegations against the US for limiting access to advanced technologies. On the domestic front, China’s services sector demonstrated stronger growth in May, buoyed by a rise in new business and overall economic activity, which provided some positive momentum for investor sentiment. Among the significant gainers were Victory Giant, which surged 16.3%, Zhongji Innolight with a 5.7% increase, and Shenzhen Forms, climbing 10.7%.