FX.co ★ China Stocks Decline as Trade Uncertainty Weighs

The Shanghai Composite Index declined by 0.44%, closing at 3,385, while the Shenzhen Component Index decreased by 0.86%, settling at 10,162 on Tuesday. This downturn marks a reversal from the previous session's gains, as investor sentiment grew cautious in anticipation of further progress in the US-China trade negotiations. Trade representatives from both nations resumed discussions in London on Monday, concentrating on rare earth shipments and the potential relaxation of export restrictions. Although President Donald Trump referred to China as a challenging partner to negotiate with, he mentioned receiving "good reports" from his delegation, remarks that failed to alleviate investor concerns. Domestically, recent economic data continued to indicate weaknesses, with ongoing deflationary pressures and lackluster trade performance underscoring the impact of the prolonged trade conflict. Among the individual stocks showing significant losses were East Money, down by 2.3%, Zhongji Innolight with a 0.7% decline, Kweichow Moutai falling by 0.8%, Eoptolink Technology decreasing by 1.3%, and Hebei Changshan dropping by 3.2%.