FX.co ★ China Stocks Slip on Trade Uncertainty

The Shanghai Composite index declined by 0.2%, closing below the 3,400 mark, while the Shenzhen Component index dipped by 0.15%, settling at 10,237 on Thursday. This downturn trimmed the gains from the previous day, reflecting ongoing uncertainties regarding US-China trade relations. Earlier in the week, US and Chinese negotiators managed to strike a preliminary agreement in London. This deal includes lifting Chinese export restrictions on rare earth minerals and restoring access for Chinese students to American universities. However, the agreement still awaits the formal endorsement of Presidents Donald Trump and Xi Jinping. President Trump has pronounced the deal as "done," while Commerce Secretary Howard Lutnick stated that tariffs on Chinese goods would not exceed the current rate of 55%. Despite these announcements, crucial details remain ambiguous, and Beijing has yet to issue an official confirmation. On Thursday, consumer stocks were the main contributors to the market's losses, with Kweichow Moutai dropping 1.5%, Wuliangye Yibin declining by 1.3%, and BYD Company falling 1.7%.