FX.co ★ China Stocks Fall on Geopolitical Risks

The Shanghai Composite index decreased by 0.5%, falling below 3,390 points, while the Shenzhen Component index declined by 1% to 10,130 points on Friday. This slump extended the losses from the day before, driven by increased geopolitical tensions affecting global market sentiment. The decline came on the heels of a preemptive strike by Israel targeting Iran's nuclear facilities — a significant escalation in Middle Eastern tensions. Israeli authorities announced a continuation of their operations until they mitigate the perceived threat entirely, sparking concerns about potential widespread instability. In terms of trade, market participants assessed news regarding a preliminary agreement between the United States and China, reached earlier this week in London. Nevertheless, this agreement is pending formal approval from Presidents Donald Trump and Xi Jinping, which contributes to lingering uncertainty. Among the notable stocks that saw declines were Kweichow Moutai with a decrease of 1.8%, BYD Company down by 2.3%, East Money dropping by 1.2%, Anhui Jianghuai falling 2.3%, and Wuliangye Yibin going down by 2.4%.